CTL breaks below key technical support level
CenturyLink Inc. (CTL) Technical Analysis Report for Jul 31, 2020 | by Techniquant Editorial Team
Moving lower for the 3rd day in a row, CTL ended the month -3.79% lower at 9.65 after losing $0.09 (-0.92%) today on high volume, notably underperforming the S&P 500 (0.77%). Closing within the prior day's range, prices failed to decisively move beyond the previous day's trading range.
Daily Candlestick Chart (CTL as at Jul 31, 2020):
Friday's trading range has been $0.34 (3.5%), that's above the last trading month's daily average range of $0.28. Weekly volatility is also higher, being slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for CTL.
One bearish candlestick pattern matches today's price action, the Bearish Spinning Top.
Prices broke below the key technical support level at 9.68 (now R1), which is likely to act as resistance going forward. The last time this happened on July 20th, CTL actually gained 0.93% on the following trading day.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
As prices are trading close to July's high at 10.17, upside momentum might speed up should the stock mark new highs for the month. Further selling could move prices lower should the market test June's nearby low at 9.43.
Among the four market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bearish Spinning Top" stand out. Its common bearish interpretation has been confirmed for CenturyLink. Out of 178 times, CTL closed lower 58.99% 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 48.31% with an average market move of -0.58%.