CMCSA closes above its opening price after recovering from early selling pressure
Comcast Corporation Class A Common Stock (CMCSA) Technical Analysis Report for May 22, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, CMCSA ended the week 7.85% higher at 38.74 after losing $0.21 (-0.54%) today on low volume, underperforming the Nasdaq 100 (0.38%) ahead of tomorrow's Memorial Day market holiday. Trading up to $0.20 lower after the open, Comcast managed to reverse during the session as bulls took control ending the day above its opening price. Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range in a lackluster session.
Daily Candlestick Chart (CMCSA as at May 22, 2020):
Friday's trading range has been $0.53 (1.37%), that's far below the last trading month's daily average range of $0.99. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for CMCSA. Prices continued to consolidate within a tight trading range between 38.47 and 39.24 where it has been caught now for the last three trading days.
Two candlestick patterns are matching today's price action, the Bullish Hikkake Pattern and the Bullish Spinning Top which are both known as bullish patterns.
Unable to break through the key technical resistance level at 38.97 (R1), the stock closed below it after spiking up to 39.00 earlier during the day. The failure to close above the resistance might increase that levels significance going forward. The market found buyers again today around 38.47 for the third trading day in a row after having found demand at 38.56 in the previous session and at 38.50 two days ago. The last time this happened on April 13th, CMCSA gained 3.58% on the following trading day.
While still in a long-term downtrend, the short and medium-term trends both turned bullish already.
Buying could accelerate should prices move above the nearby swing high at 39.24 where further buy stops might get activated.
Among the eight market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "2 Consecutive Lower Closes" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for Comcast. Out of 291 times, CMCSA closed higher 55.33% 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 64.26% with an average market move of 1.18%.