CTL closes higher for the 4th day in a row
CenturyLink Inc. (CTL) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team
Moving higher for the 4th day in a row, CTL finished Wednesday at 11.00 edging higher $0.01 (0.09%) on low volume, outperforming the S&P 500 (-0.46%). Trading $0.22 higher after the open, the market was unable to hold its gains as the bears took control ending the day below 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 Sep 16, 2020):
Wednesday's trading range has been $0.25 (2.27%), that's below the last trading month's daily average range of $0.31. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently lower than usual for CTL.
Five candlestick patterns are matching today's price action, the Bearish Hikkake Pattern, the Gravestone Doji, the Northern Doji and the Shooting Star which are known as bearish patterns and one neutral pattern, the Doji. The last time a Gravestone Doji showed up on May 12th, CTL lost -5.55% on the following trading day.
Prices are trading close to the key technical support level at 10.83 (S1). Unable to break through the key technical resistance level at 11.13 (R1), the share closed below it after spiking up to 11.23 earlier during the day. The failure to close above the resistance might increase that levels importance going forward.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Among the nine market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Northern Doji" stand out. Although it is usually interpreted as bearish, it has actually shown to be bullish for CenturyLink. Out of 75 times, CTL closed higher 54.67% 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 57.33% with an average market move of 0.23%.