CHTR closes higher for the 3rd day in a row
Charter Communications Inc. (CHTR) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, CHTR ended Wednesday at 630.07 gaining $7.52 (1.21%) on high volume, notably outperforming the Nasdaq 100 (-1.67%). Today's close at 630.07 marks the highest recorded closing price ever. Closing above Tuesday's high at 627.43, the stock confirmed its breakout through the prior session high after trading up to $8.42 above it intraday.
Daily Candlestick Chart (CHTR as at Sep 16, 2020):
Wednesday's trading range has been $9.64 (1.54%), that's slightly below the last trading month's daily average range of $12.36. Things look different on the weekly timeframe, where the market's trading range of the last week has been way above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for CHTR.
Buyers managed to take out the key technical resistance level at 629.52 (now S1), which is likely to act as support going forward. The last time this happened on Monday, CHTR gained 2.11% on the following trading day.
Crossing above the upper Bollinger Band for the first time since August 4th, prices have shown unusually strong upward momentum in the short-term. This might either indicate a potential buying climax after which prices could head back down towards the mean of the Bollinger Bands at 612.50 or signal the beginning of a strong momentum breakout leading to even higher prices.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the Technical Indicators based market condition "Close crossed above the upper Bollinger Band" stand out. Its common bullish interpretation has been confirmed for Charter Communications. Out of 103 times, CHTR closed higher 55.34% 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 67.96% with an average market move of 1.23%.