CTL dominated by bulls lifting the market higher throughout the day
CenturyLink Inc. (CTL) Technical Analysis Report for Jun 30, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, CTL finished the month 2.03% higher at 10.03 after gaining $0.24 (2.45%) today, outperforming the S&P 500 (1.54%). The bulls were in full control today, moving the market higher throughout the whole session. Ending with a strong close near the high of the day sets a bullish note for the next session.
Daily Candlestick Chart (CTL as at Jun 30, 2020):
Tuesday's trading range has been $0.29 (2.95%), that's below the last trading month's daily average range of $0.40. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for CTL.
Two candlestick patterns are matching today's price action, the Bullish Short Candle and the White Candle which are both known as bullish patterns. The last time a Bullish Short Candle showed up on May 15th, CTL gained 4.53% on the following trading day.
Unable to break through the key technical resistance level at 10.07 (R1), the stock closed below it after spiking up to 10.07 earlier during the day. The failure to close above the resistance might increase that levels significance going forward.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Buying could accelerate should prices move above the close-by swing high at 10.11 where further buy stops might get triggered.
Among the eight market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bounced off Technical Resistance R1" stand out. Its common bearish interpretation has been confirmed for CenturyLink. Out of 346 times, CTL closed lower 57.51% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the short side has been after 10 trading days, showing a win rate of 55.49% with an average market move of -0.74%.