CMCSA closes above its opening price after recovering from early selling pressure
Comcast Corporation Class A Common Stock (CMCSA) Technical Analysis Report for Feb 14, 2020 | by Techniquant Editorial Team
Moving higher for the 4th day in a row, CMCSA finished the week 3.02% higher at 46.09 after gaining $0.02 (0.04%) today on low volume, slightly underperforming the Nasdaq 100 (0.29%) ahead of tomorrow's Presidents' Day market holiday. Today's close at 46.09 marks the highest recorded closing price since January 22nd. Trading up to $0.33 lower after the open, the share managed to reverse during the session as bulls took control ending the day above its opening price. Closing within the prior day's range, prices missed to decisively move beyond the previous day's trading range in a lackluster session.
Daily Candlestick Chart (CMCSA as at Feb 14, 2020):
Friday's trading range has been $0.43 (0.93%), that's far below the last trading month's daily average range of $0.84. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for CMCSA.
During the whole day, prices traded within the prior day's range, unable to trade above the previous day's high or below the prior day's low forming an Inside Bar. Additionally, three candlestick patterns are matching today's price action, the Hanging Man and the Northern Doji which are both known as bearish patterns and one neutral pattern, the Doji.
Prices are trading close to the key technical resistance level at 46.22 (R1). After having been unable to move lower than 45.69 in the previous session, the stock found buyers again around the same price level today at 45.75. The last time this happened on Tuesday, CMCSA gained 2.75% on the following trading day.
Although still in a long-term downtrend, the short and medium-term trends both turned bullish already.
Buying might speed up should prices move above the close-by swing high at 46.35 where further buy stops could get activated. With prices trading close to this year's high at 47.74, upside momentum might accelerate should the market be able to break out to new highs for the year.
Among the seven 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 Comcast. Out of 83 times, CMCSA closed higher 53.01% 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 61.45% with an average market move of 0.68%.