COMM closes lower for the 4th day in a row
CommScope Holding Company Inc. (COMM) Technical Analysis Report for Dec 04, 2019 | by Techniquant Editorial Team
Moving lower for the 4th day in a row, COMM finished Wednesday at 13.01 losing $0.11 (-0.84%), notably underperforming the S&P 500 (0.63%). Today's close at 13.01 marks the lowest recorded closing price since November 6th. Trading $0.26 higher after the open, the share was unable to hold its gains as the bears took control ending the day below its opening price. Closing within the previous day's range, prices missed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (COMM as at Dec 04, 2019):
Wednesday's trading range has been $0.43 (3.26%), that's slightly below the last trading month's daily average range of $0.58. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for COMM.
Unable to break through the key technical resistance level at 13.35 (R1), CommScope Holding closed below it after spiking up to 13.44 earlier during the day. The failure to close above the resistance could increase that levels importance going forward. When prices bounced off a significant resistance level the last time on November 22nd, COMM actually gained 1.08% on the following trading day.
The market shows weakness in the short-term (in accordance with its long-term downtrend) with only the medium-term trend still being bullish.
Selling might speed up should prices move below the close-by swing low at 12.65 where further sell stops could get activated.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bounced off Technical Resistance R1" stand out. Its common bearish interpretation has been confirmed for CommScope Holding. Out of 239 times, COMM closed lower 55.65% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the short side has been after 10 trading days, showing a win rate of 52.72% with an average market move of -0.94%.