CTL finds buyers at key support level
CenturyLink Inc. (CTL) Technical Analysis Report for Feb 14, 2020 | by Techniquant Editorial Team
CTL ended the week -4.34% lower at 13.90 after gaining $0.02 (0.14%) today, slightly underperforming the S&P 500 (0.18%) ahead of tomorrow's Presidents' Day market holiday. Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (CTL as at Feb 14, 2020):
Friday's trading range has been $0.45 (3.24%), that's slightly above the last trading month's daily average range of $0.43. Weekly volatility is also higher, being way above the market's average weekly trading range. The longer-term, monthly volatility is currently lower than usual for CTL.
During the whole day, prices traded within the previous day's range, unable to trade above the prior day's high or below the previous day's low forming an Inside Bar. Additionally, three candlestick patterns are matching today's price action, the Bullish Harami Cross Pattern and the Southern Doji which are both known as bullish patterns and one neutral pattern, the Doji. The last time a Bullish Harami Cross Pattern showed up on October 29, 2018, CTL gained 3.54% on the following trading day.
After trading down to 13.74 earlier during the day, the stock bounced off the key technical support level at 13.89 (S1). The failure to close below the support could increase that levels significance as support going forward.
CenturyLink shows strength in the short-term supported by its long-term uptrend with only the medium-term trend being bearish.
Among the four market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bounced off Technical Support S1" stand out. Its common bullish interpretation has been confirmed for CenturyLink. Out of 402 times, CTL closed higher 57.96% 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 51.00% with an average market move of 0.24%.