CTL breaks back above 50-day moving average
CenturyLink Inc. (CTL) Technical Analysis Report for May 22, 2020 | by Techniquant Editorial Team
CTL ended the week 5.93% higher at 9.82 after gaining $0.11 (1.13%) today on low volume, outperforming the S&P 500 (0.24%) ahead of tomorrow's Memorial Day market holiday. Trading up to $0.08 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 missed to decisively move beyond the prior day's trading range in a lackluster session.
Daily Candlestick Chart (CTL as at May 22, 2020):
Friday's trading range has been $0.18 (1.85%), that's far below the last trading month's daily average range of $0.39. 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. Prices continued to consolidate within a tight trading range between 9.47 and 10.07 where it has been caught now for the whole last trading week.
One bullish candlestick pattern matches today's price action, the Bullish Hikkake Pattern. The last time a Bullish Hikkake Pattern showed up on April 15th, CTL actually lost -3.47% on the following trading day.
The stock managed to close back above the 50-day moving average at 9.80. Prices are trading close to the key technical resistance level at 10.00 (R1). After having been unable to move lower than 9.66 in the previous session, the market found buyers again around the same price level today at 9.65.
The share shows weakness in the short-term (in accordance with its long-term downtrend) with only the medium-term trend still being bullish.
Buying could speed up should prices move above the close-by swing high at 10.07 where further buy stops might get activated.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bullish Hikkake Pattern" stand out. Its common bullish interpretation has been confirmed for CenturyLink. Out of 114 times, CTL closed higher 53.51% 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 two trading days, showing a win rate of 55.26% with an average market move of 0.17%.