CMCSA closes within previous day's range after lackluster session
Comcast Corporation Class A Common Stock (CMCSA) Technical Analysis Report for Jul 07, 2020 | by Techniquant Editorial Team
CMCSA finished Tuesday at 40.07 losing $0.26 (-0.64%), but still slightly outperforming the Nasdaq 100 (-0.75%). 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 Jul 07, 2020):
Tuesday's trading range has been $0.35 (0.87%), that's far below the last trading month's daily average range of $1.07. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower 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, two candlestick patterns are matching today's price action, the Bullish Spinning Top which is known as bullish pattern and one bearish pattern, the Shooting Star.
Prices are trading close to the key technical resistance level at 40.37 (R1). The share was sold again around 40.35 after having seen highs at 40.37, 40.28 and 40.21 in the last three trading sessions. Obviously there is something going on at that level. The last time this happened on April 13th, CMCSA actually gained 3.58% on the following trading day.
Although still in a long-term downtrend, the short and medium-term trends both turned bullish already.
Buying could accelerate should prices move above the close-by swing high at 40.37 where further buy stops might get triggered. Selling could speed up should prices move below the nearby swing low at 39.17 where further sell stops might get activated.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bullish Spinning Top" stand out. Its common bullish interpretation has been confirmed for Comcast. Out of 219 times, CMCSA closed higher 52.51% 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 62.10% with an average market move of 0.95%.