CHTR closes below its opening price unable to hold early session gains
Charter Communications Inc. (CHTR) Technical Analysis Report for Nov 09, 2018 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, CHTR finished the week 1.02% higher at 321.11 after losing $3.54 (-1.09%) today on low volume, but still outperforming the Nasdaq 100 (-1.67%). Trading $4.69 higher after the open, the stock was unable to hold its gains as the bears took control ending the day below its opening price. Closing below Thursday's low at 322.32, the share confirmed its breakout through the prior session low after trading up to $5.70 below it intraday.
Daily Candlestick Chart (CHTR as at Nov 09, 2018):
Friday's trading range has been $11.06 (3.42%), that's slightly above the last trading month's daily average range of $10.74. Things look different on the weekly timeframe, where the market's trading range of the last week has been way below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for CHTR.
Two candlestick patterns are matching today's price action, the Bearish Spinning Top and the Bearish High-Wave Candle which are both known as bearish patterns. The last time a Bearish High-Wave Candle showed up on October 26th, CHTR actually gained 1.98% on the following trading day.
After trading as low as 316.62 during the day, Charter Communications found support at the 50-day moving average at 318.02. Prices are trading close to the key technical resistance level at 327.99 (R1).
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Buying might speed up should prices move above the close-by swing high at 329.91 where further buy stops could get activated. Trading close to September's high at 334.98 we might see further upside momentum if potential buy stops at the level get triggered.
Among the eight market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bearish High-Wave Candle" stand out. While it is usually interpreted as bearish, it has actually shown to be bullish for Charter Communications. Out of 20 times, CHTR closed higher 55.00% 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 70.00% with an average market move of 1.87%.