CHTR unable to break through key resistance level
Charter Communications Inc. (CHTR) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team
Moving higher for the 4th day in a row, CHTR finished Thursday at 454.17 gaining $33.40 (7.94%) on low volume, notably outperforming the Nasdaq 100 (5.72%). The bulls were in full control today, moving the market higher throughout the whole session. Closing above Wednesday's high at 441.00, the stock confirmed its breakout through the previous session high after trading up to $19.54 above it intraday.
Daily Candlestick Chart (CHTR as at Mar 26, 2020):
Thursday's trading range has been $38.49 (9.07%), that's far above the last trading month's daily average range of $27.57. Weekly volatility is also higher, being way above the market's average weekly trading range. The longer-term, monthly volatility is currently significantly higher than usual for CHTR.
One bullish candlestick pattern matches today's price action, the White Candle.
The share managed to close back above the 200-day moving average at 446.95 for the first time since March 13th. When this moving average was crossed above the last time on March 13th, CHTR actually lost -14.33% on the following trading day. Unable to break through the key technical resistance level at 460.47 (R1), the market closed below it after spiking up to 460.54 earlier during the day. The failure to close above the resistance might increase that levels importance going forward.
Though Charter Communications is experiencing a short-term uptrend, this could just be a correction, as both the medium and long-term trends are still bearish.
Among the nine market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "4 Consecutive Higher Closes" stand out. Its common bullish interpretation has been confirmed for Charter Communications. Out of 86 times, CHTR closed higher 51.16% 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 60.47% with an average market move of 0.34%.