DISCA unable to break through key resistance level
Discovery Inc. Series A Common Stock (DISCA) Technical Analysis Report for Dec 07, 2018 | by Techniquant Editorial Team
DISCA finished the week -5.83% lower at 28.93 after losing $0.22 (-0.75%) today, but still notably outperforming the S&P 500 (-2.33%) following today's NFP report. Trading $0.44 higher after the open, the market was unable to hold its gains as the bears took control ending the day below its opening price. The last time this happened on Tuesday, DISCA actually gained 4.18% on the following trading day. 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 (DISCA as at Dec 07, 2018):
Friday's trading range has been $0.90 (3.09%), that's below the last trading month's daily average range of $1.19. Things look different on the weekly timeframe, where the market's trading range of the last week has been way above the market's average weekly trading range. The longer-term, monthly volatility is currently significantly higher than usual for DISCA.
One bearish candlestick pattern matches today's price action, the Bearish Spinning Top.
Unable to break through the key technical resistance level at 29.12 (R1), Discovery closed below it after spiking up to 29.55 earlier during the day. The failure to close above the resistance might increase that levels significance going forward.
Although still in a long-term uptrend, the short and medium-term trends both turned bearish already.
Among the three market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Bearish Intraday Reversal" stand out. Its common bearish interpretation has been confirmed for Discovery. Out of 353 times, DISCA closed lower 52.69% of the time on the next trading day after the market condition occurred.