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TDG — Oversold Bullish Reversal

Status: Invalidated

Scanner score: 20.0/100

Why this was flagged

TDG was identified as a bullish technical setup based on the Oversold Bullish Reversal pattern. The scanner found a score of 20.0/100 using trend alignment, momentum, price action, volume, and risk-management rules. Monitor update: Latest daily-chart analysis no longer reports a bullish long setup.

Trade framework

Current price$1,236.71
Entry zone$1,236.71 – $1,244.96
Stop-loss / invalidation$1,187.23
Target 1$1,335.67
Target 2$1,385.15
Reward/risk2.00:1
Suggested holding windowAbout 2–8 trading days; reversal setups should work relatively quickly.
FoundJul 24, 2026 10:19 pm
Potential expirationAug 6, 2026 7:35 pm
Entry plan: Consider a limit order only within the displayed entry zone. If price does not enter that range, skip the trade rather than chasing it.

Position-sizing example

Reference entry$1,240.83
Planned risk per share$53.60
Example: $100 planned risk1 shares
Example: $250 planned risk4 shares

These examples use the distance between the reference entry and stop-loss. They do not account for commissions, slippage, taxes, overnight gaps, or your personal account size.

Exit plan

  1. Stop-loss: Exit if the stop-loss is reached. Do not move the stop farther away to avoid taking the planned loss.
  2. Target 1: Consider taking partial profit when Target 1 is reached and reducing risk on the remaining shares.
  3. Target 2 or trailing exit: Consider closing the remaining position at Target 2, or use a disciplined trailing stop only if the trend remains strong.
  4. Time exit: Reassess or close a trade that fails to progress within the suggested holding window.

Technical chart

Daily closing price with moving averages and planned trade levels. This chart is a screening aid, not a guarantee of future results.

$1,105.18$1,182.10$1,259.02$1,335.94$1,412.86Target 2 $1,385.15Target 1 $1,335.67Entry high $1,244.96Entry low $1,236.71Stop $1,187.23Mar 18, 2026Jul 27, 2026
CloseSMA 20EMA 20SMA 50SMA 200Entry zoneStop-lossTargets

$1,000 educational outcome examples

Example reference entry$1,240.83
Example fractional shares0.81
If Target 1 is reached$1,076.43 value (+7.6%)
If Target 2 is reached$1,116.31 value (+11.6%)
If the stop-loss is reached$956.80 value (-4.3%)

These examples use a $1,000 position and fractional shares at the midpoint of the entry zone. Actual results can differ because of market gaps, fills, spreads, commissions, taxes, slippage, and changing conditions.

Easy explanation for new investors

Why the scanner noticed this stock
The scanner found Transdigm Group Incorporated (TDG) using a pattern called an Oversold Bullish Reversal. This means the price dropped quickly, and the Relative Strength Index (RSI) is at 26.07. RSI is a tool used to see if a stock has been sold too much. When the RSI is low, it can sometimes mean the selling might stop soon. The scanner gave this setup a score of 20 out of 100 based on its rules for price and volume.

What the price plan means
The entry zone is between 1236.71 and 1244.95. If you enter here, the first goal is to reach 1335.67, and the second goal is 1385.15. To manage risk, a stop-loss price of 1187.22 is set. A stop-loss is an automatic instruction to exit if the price falls too low. The reward-to-risk ratio is 2, which means the planned profit is twice as large as the potential loss.

What could make the idea fail
The stock might continue to drop instead of turning around. The relative volume is 0.72, which means there is less trading activity than usual. Lower volume can mean there isn't enough interest to push the price back up.

Important reminder
This information is for educational purposes only. It is not a recommendation to trade. Always do your own research before making financial decisions.

Recent news context

This automated review is separate from the technical score. It summarizes recent related articles and does not predict price movement.

Overall context: Caution (High confidence)

Transdigm Group Incorporated (TDG) shows mixed signals. While the company reported strong Q1 earnings that beat analyst expectations and has seen significant increases in institutional holdings from firms like Themes Management Co LLC and First Trust Advisors LP, there is notable internal activity to monitor. Multiple reports indicate substantial recent insider selling by Director W Nicholas Howley and COO Joel Reiss. Furthermore, despite a technical setup suggesting an oversold bullish reversal and a consensus analyst target price of $1,477.47, the overall analyst consensus remains a 'Hold'.

Potentially supportive context

  • Reported strong Q1 earnings that exceeded analyst expectations.
  • Significant increase in institutional ownership from various firms including Themes Management Co LLC and First Trust Advisors LP.
  • Recent stock performance showed two consecutive days of gains, outperforming the broader market.

Risks and caution items

  • Reported substantial recent insider selling by Director W Nicholas Howley and COO Joel Reiss.
  • Wall Street analysts maintain a consensus 'Hold' rating on the stock.
  • Technical setup indicates an oversold condition with a low technical score of 20.

Latest reviewed article: Jul 26, 2026 11:09 am

Recent related articles

Transdigm Group Incorporated $TDG is Themes Management Co LLC's 9th Largest PositionMarketBeat · Jul 26, 2026 · Provider label: Neutral

Themes Management Co LLC has significantly increased its stake in Transdigm Group Incorporated (NYSE:TDG) by 67.3% in the first quarter, making it their 9th largest position. Other institutional investors have also adjusted their holdings in the aerospace company. Analyst ratings for TDG…

Transdigm Group Incorporated $TDG Shares Bought by First Trust Advisors LPMarketBeat · Jul 26, 2026 · Provider label: Neutral

First Trust Advisors LP increased its stake in Transdigm Group Incorporated (NYSE:TDG) by 25.8% in the first quarter, now owning 58,308 shares valued at approximately $67.58 million. Other institutional investors like Temasek Holdings Private Ltd and PNC Financial Services Group Inc. also…

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Important: Some returned articles may describe competitors, industry conditions, or related companies. Open the source before relying on an article.

Scanner confirmations

  • RSI is near oversold territory with bullish candle confirmation.
Important: This is an automated educational screening result, not a buy recommendation. Confirm price, liquidity, earnings dates, news, and your own risk before entering any trade.
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