CMCSA breaks below 20-day moving average for the first time since July 2nd
Comcast Corporation Class A Common Stock (CMCSA) Technical Analysis Report for Aug 05, 2020 | by Techniquant Editorial Team
CMCSA ended Wednesday at 42.29 tanking $0.92 (-2.13%), significantly underperforming the Nasdaq 100 (0.26%). This is the biggest single-day loss in over a month. The bears were in full control today, moving the market lower throughout the whole session. Closing below Tuesday's low at 42.54, Comcast confirmed its breakout through the prior session low after trading up to $0.30 below it intraday.
Daily Candlestick Chart (CMCSA as at Aug 05, 2020):
Wednesday's trading range has been $1.23 (2.84%), that's above the last trading month's daily average range of $0.92. Weekly volatility is also higher, being above the market's average weekly trading range. The longer-term, monthly volatility is currently higher than usual for CMCSA.
In a volatile session, prices traded above the previous day's high as well as below the prior day's low, forming a bearish Outside Bar. Notwithstanding a strong opening the market closed below the previous day's open and close, forming a bearish Engulfing Candle. The last time this candlestick pattern showed up on July 23rd, CMCSA actually gained 2.02% on the following trading day. Additionally, one bearish candlestick pattern matches today's price action, the Black Candle.
Prices are trading close to the key technical support level at 41.96 (S1). The stock closed below the 20-day moving average at 42.31 for the first time since July 2nd.
Though the share is currently in a short-term downtrend, this might just be a correction, as both the medium and long-term trends are still bullish.
Selling could accelerate should prices move below the nearby swing low at 41.96 where further sell stops might get triggered.
Among the 11 market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Close near low of period" stand out. While it is usually interpreted as bearish, it has actually shown to be bullish for Comcast. Out of 448 times, CMCSA closed higher 54.24% 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 63.39% with an average market move of 1.15%.