CHTR pushes through key technical resistance level
Charter Communications (CHTR) Technical Analysis Report for Oct 12, 2018
CHTR finished the week -2.31% lower at 308.74 after gaining $6.82 (2.26%) today, underperforming the Nasdaq 100 (2.77%). Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (CHTR as at Oct 12, 2018):
Friday's trading range has been $6.98 (2.29%), that's slightly below the last trading month's daily average range of $7.56. Things look different on the weekly timeframe, where the market's trading range of the last week has been way above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for CHTR.
During the whole day, prices traded within the previous day's range, unable to trade above the prior day's high or below the previous day's low forming an Inside Bar. After moving lower in the prior session, the stock managed to close higher but below the previous day's open, forming a bullish Harami Candle. The last time this candlestick pattern showed up on August 16th, CHTR actually lost -0.78% on the following trading day.
Buyers managed to take out the key technical resistance level at 308.69 (now S1), which is likely to act as support going forward.
Crossing above the lower Bollinger Band, prices have lost at least some of their downward momentum in the short-term and could now be heading back up towards the mean of the Bollinger Bands at 322.09.
Though the market is currently in a short-term downtrend, this might just be a correction, as both the medium and long-term trends are still bullish.
Among the four market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Close to S1 Support" stand out. Its common bullish interpretation has been confirmed for Charter Communications. Out of 981 times, CHTR closed higher 53.72% 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 59.84% with an average market move of 1.22%.