CTL breaks back above 20-day moving average
CenturyLink Inc. (CTL) Technical Analysis Report for Apr 16, 2019 | by Techniquant Editorial Team
CTL ended Tuesday at 12.25 gaining $0.28 (2.34%) on high volume, strongly outperforming the S&P 500 (0.05%). Trading up to $0.15 lower after the open, the market managed to reverse during the session as bulls took control ending the day above its opening price. Closing above Monday's high at 12.20, the stock confirmed its breakout through the previous session high after trading up to $0.05 above it intraday.
Daily Candlestick Chart (CTL as at Apr 16, 2019):
Tuesday's trading range has been $0.40 (3.33%), that's far above the last trading month's daily average range of $0.28. Weekly volatility is also higher, being above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for CTL.
In a volatile session, prices traded above the prior day's high as well as below the previous day's low, forming a bullish Outside Bar. Additionally, two candlestick patterns are matching today's price action, the Bullish Closing Marubozu and the White Candle which are both known as bullish patterns.
The share managed to close back above the 20-day moving average at 12.24. When this moving average was crossed above the last time on April 1st, CTL actually lost -1.94% on the following trading day. Prices are trading close to the key technical resistance level at 12.38 (R1).
Although CenturyLink is experiencing a short-term uptrend, this might just be a correction, as both the medium and long-term trends are still bearish.
With prices trading close to this year's low at 11.52, downside momentum could speed up should CTL break out to new lows for the year.
Among the eight market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bullish Closing Marubozu" stand out. Its common bullish interpretation has been confirmed for CenturyLink. Out of 11 times, CTL closed higher 54.55% 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 54.55% with an average market move of 0.77%.