CTL enters Death Cross for the first time since October 28, 2019
CenturyLink Inc. (CTL) Technical Analysis Report for Mar 27, 2020 | by Techniquant Editorial Team
CTL finished the week -0.44% lower at 9.06 after losing $0.23 (-2.48%) today, but still outperforming the S&P 500 (-3.37%). Trading up to $0.22 lower after the open, CenturyLink managed to reverse during the session as bulls took control ending the day above its opening price. Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range in a lackluster session.
Daily Candlestick Chart (CTL as at Mar 27, 2020):
Friday's trading range has been $0.37 (4.1%), that's far below the last trading month's daily average range of $0.92. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for CTL.
Two candlestick patterns are matching today's price action, the Bullish Hikkake Pattern and the Bullish Spinning Top which are both known as bullish patterns. The last time a Bullish Spinning Top showed up on March 19th, CTL actually lost -9.90% on the following trading day.
Prices are trading close to the key technical support level at 8.66 (S1).
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term. With its 50-day moving average crossing below its 200-day moving average, the stock has entered a so-called "Death Cross" for the first time since October 28, 2019. Showing increasing downward momentum in the short and medium-term the "Death Cross" is known to indicate a potential bear market on the horizon.
Selling could speed up should prices move below the nearby swing low at 8.66 where further sell stops might get triggered.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the Technical Indicators based market condition "Death Cross" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for CenturyLink. Out of 8 times, CTL closed higher 62.50% 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 50.00% with an average market move of 1.37%.