AHC plummets, losing $0.18 (-6.12%) within a single day
A.H. Belo Corporation (AHC) Technical Analysis Report for Feb 14, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, AHC ended the week -4.17% lower at 2.76 after tanking $0.18 (-6.12%) today, notably underperforming the S&P 500 (0.18%) ahead of tomorrow's Presidents' Day market holiday. This is the biggest single-day loss in over three months. Today's close at 2.76 marks the lowest recorded closing price since September 8, 2009. The bears were in full control today, moving the market lower throughout the whole session. Closing below Thursday's low at 2.84, the stock confirmed its breakout through the prior session low after trading up to $0.08 below it intraday.
Daily Candlestick Chart (AHC as at Feb 14, 2020):
Friday's trading range has been $0.22 (7.38%), that's far above the last trading month's daily average range of $0.08. Weekly volatility is also higher, being way above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for AHC.
Four candlestick patterns are matching today's price action, the Last Engulfing Bottom Pattern which is known as bullish pattern and three bearish patterns, the Bearish Closing Marubozu, the Bearish Marubozu and the Black Candle. The last time a Bearish Marubozu showed up on September 18, 2019, AHC actually gained 1.94% on the following trading day.
A. H. Belo closed back below the 50-day moving average at 2.93 for the first time since February 7th. After having been unable to move above 2.99 in the previous session, the market ran into sellers again around the same price level today, missing to move higher than 2.98.
Crossing below the lower Bollinger Band for the first time since December 30, 2019, prices have shown unusually strong downward momentum in the short-term. This might either indicate a potential selling climax after which prices could head back up towards the mean of the Bollinger Bands at 2.93 or signal the beginning of a strong momentum breakout leading to even lower prices.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
2019's low at 2.75 is within reach and we might see further downside momentum should the share break out beyond.
Among the 18 market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bearish Closing Marubozu" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for A. H. Belo. Out of 105 times, AHC closed higher 55.24% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the long side has been after 10 trading days, showing a win rate of 60.95% with an average market move of 1.27%.