CHTR finds buyers around 509.24 for the third day in a row
Charter Communications Inc. (CHTR) Technical Analysis Report for May 22, 2020 | by Techniquant Editorial Team
CHTR ended the week 1.89% higher at 512.90 after losing $4.06 (-0.79%) today, notably underperforming the Nasdaq 100 (0.38%) ahead of tomorrow's Memorial Day market holiday. Trading $5.39 higher after the open, the share was unable to hold its gains as the bears took control ending the day below its opening price. Closing within the previous day's range, prices missed to decisively move beyond the prior day's trading range in a lackluster session.
Daily Candlestick Chart (CHTR as at May 22, 2020):
Friday's trading range has been $9.86 (1.92%), that's below the last trading month's daily average range of $14.18. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently lower than usual for CHTR. Prices continued to consolidate within a tight trading range between 505.80 and 525.77 where it has been caught now for the whole last trading week.
After moving higher in the previous session, the stock closed lower but above the prior day's open today, forming a bearish Harami Candle. Additionally, one bearish candlestick pattern matches today's price action, the Bearish Spinning Top. The last time a Bearish Spinning Top showed up on May 14th, CHTR actually gained 1.20% on the following trading day.
Prices are trading close to the key technical resistance level at 521.80 (R1). The market found buyers again today around 509.24 for the third trading day in a row after having found demand at 510.00 in the previous session and at 510.90 two days ago.
Although Charter Communications is currently in a short-term downtrend, this might just be a correction, as both the medium and long-term trends are still bullish.
Buying could accelerate should prices move above the close-by swing high at 525.77 where further buy stops might get triggered.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bearish Spinning Top" stand out. While it is usually interpreted as bearish, it has actually shown to be bullish for Charter Communications. Out of 224 times, CHTR closed higher 56.25% 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 64.29% with an average market move of 1.39%.