Software provider Tyler Technologies (TYL) was up smartly in trading Monday although trading volume is light. Is this a "quiet bottom" or are prices vulnerable to further declines? Let's drill down on the charts and indicators to see what strategy makes sense.
In this daily bar chart of TYL, below, I see a longer-term downtrend in place. Prices are testing the declining 50-day moving average line but remain below the bearish 200-day moving average line. The trading volume increased in November when prices made a slight new low but turnover did not reach a level where I would suggest we have seen strong hands enter the market.
The On-Balance-Volume (OBV) line has been in a downward trend all year and tells me that sellers of TYL have been more aggressive than buyers. The Moving Average Convergence Divergence (MACD) oscillator is bearish.