AHC dominated by bears dragging the market lower throughout the day
A.H. Belo Corporation (AHC) Technical Analysis Report for Jul 31, 2020 | by Techniquant Editorial Team
AHC finished the month -12.14% lower at 1.52 after tanking $0.12 (-7.32%) today on high volume, strongly underperforming the S&P 500 (0.77%). This is the biggest single-day loss in over three weeks. The last time we've seen such an unusually strong single-day loss on July 22nd, AHC lost -5.23% on the following trading day. Today's close at 1.52 marks the lowest recorded closing price since May 15th. The bears were in full control today, moving the market lower throughout the whole session. Closing below Thursday's low at 1.61, the stock confirmed its breakout through the previous session low after trading up to $0.11 below it intraday.
Daily Candlestick Chart (AHC as at Jul 31, 2020):
Friday's trading range has been $0.16 (9.64%), that's far above the last trading month's daily average range of $0.08. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for AHC.
One bearish candlestick pattern matches today's price action, the Black Candle.
After trading down to 1.50 earlier during the day, the market bounced off the key technical support level at 1.51 (S1). The failure to close below the support could increase that levels importance as support going forward. A. H. Belo closed back below the 100-day moving average at 1.63. After having been unable to move above 1.66 in the prior session, the share ran into sellers again around the same price level today, failing to move higher than 1.66.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Among the 12 market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bearish Break through SMA 100" stand out. While it is usually interpreted as bearish, it has actually shown to be bullish for A. H. Belo. Out of 70 times, AHC closed higher 57.14% 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 five trading days, showing a win rate of 54.29% with an average market move of -0.07%.