CHTR closes higher for the 2nd day in a row
Charter Communications Inc. (CHTR) Technical Analysis Report for Jun 30, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, CHTR ended the month -6.24% lower at 510.04 after edging higher $0.82 (0.16%) today, notably underperforming the Nasdaq 100 (1.96%). Trading up to $11.55 lower after the open, the stock managed to reverse during the session as bulls took control ending the day above its opening price. The last time this happened on June 25th, CHTR actually lost -1.52% on the following trading day. Closing within the previous day's range, prices missed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (CHTR as at Jun 30, 2020):
Tuesday's trading range has been $13.81 (2.71%), that's slightly above the last trading month's daily average range of $12.98. 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 lower than usual for CHTR. Prices continued to consolidate within a tight trading range between 498.08 and 517.84 where it has been caught now for the whole last trading week.
Three candlestick patterns are matching today's price action, the Southern Doji and the Takuri Line which are both known as bullish patterns and one neutral pattern, the Doji.
After trading down to 498.08 earlier during the day, the share bounced off the key technical support level at 508.20 (S1). The failure to close below the support might increase that levels significance as support going forward. After having been unable to move lower than 499.51 in the previous session, Charter Communications found buyers again around the same price level today at 498.08.
The market shows weakness in the short-term (in accordance with its long-term downtrend) with only the medium-term trend still being bullish.
Buying could speed up should prices move above the nearby swing high at 513.56 where further buy stops might get triggered.
Among the 11 market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bounced off Technical Support S1" stand out. Its common bullish interpretation has been confirmed for Charter Communications. Out of 442 times, CHTR closed higher 57.01% 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 63.12% with an average market move of 1.28%.