COMM runs into sellers around 14.65 for the forth day in a row
CommScope Holding Company Inc. (COMM) Technical Analysis Report for Jan 24, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, COMM ended the week -4.19% lower at 14.16 after losing $0.32 (-2.21%) today, strongly underperforming the S&P 500 (-0.9%). The bears were in full control today, moving the market lower throughout the whole session. Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (COMM as at Jan 24, 2020):
Friday's trading range has been $0.55 (3.76%), that's slightly above the last trading month's daily average range of $0.53. Weekly volatility is also higher, being slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for COMM.
One bearish candlestick pattern matches today's price action, the Black Candle. The last time a Black Candle showed up on January 10th, COMM actually gained 3.23% on the following trading day.
After trading down to 14.10 earlier during the day, CommScope Holding bounced off the key technical support level at 14.15 (S1). The failure to close below the support could increase that levels importance as support going forward. The share was sold again around 14.65 after having seen highs at 14.63, 14.72 and 14.72 in the last three trading sessions. Obviously there is something going on at that level.
The stock shows strength in the short-term supported by its long-term uptrend with only the medium-term trend being bearish.
Selling might speed up should prices move below the close-by swing low at 13.61 where further sell stops could get activated.
Among the 11 market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "High close to previous two Highs" stand out. While it is usually interpreted as bearish, it has actually shown to be bullish for CommScope Holding. Out of 99 times, COMM closed higher 57.58% 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 eight trading days, showing a win rate of 57.58% with an average market move of 0.01%.