CHTR breaks back below 50-day moving average
Charter Communications Inc. (CHTR) Technical Analysis Report for Jul 02, 2020 | by Techniquant Editorial Team
CHTR ended Thursday at 517.69 losing $4.22 (-0.81%) on low volume, strongly underperforming the Nasdaq 100 (0.61%) ahead of tomorrow's Independence Day OBS market holiday. Trading $6.77 higher after the open, Charter Communications 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.
Daily Candlestick Chart (CHTR as at Jul 02, 2020):
Thursday's trading range has been $11.85 (2.27%), that's slightly below the last trading month's daily average range of $13.55. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for CHTR.
Prices are trading close to the key technical support level at 508.20 (S1). The share closed back below the 50-day moving average at 518.48. When this moving average was crossed below the last time on June 24th, CHTR actually gained 0.40% on the following trading day.
The stock shows weakness in the short-term (in accordance with its long-term downtrend) with only the medium-term trend still being bullish.
Among the four market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Bearish Intraday Reversal" stand out. While it is usually interpreted as bearish, it has actually shown to be bullish for Charter Communications. Out of 423 times, CHTR closed higher 53.43% 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 62.17% with an average market move of 1.19%.