DISCA finds buyers again around 26.50
Discovery Inc. Series A Common Stock (DISCA) Technical Analysis Report for Jan 11, 2019 | by Techniquant Editorial Team
DISCA finished the week 3.75% higher at 27.12 after gaining $0.31 (1.16%) today on low volume, strongly outperforming the S&P 500 (-0.01%). 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 Jan 11, 2019):
Friday's trading range has been $0.78 (2.93%), that's below the last trading month's daily average range of $0.97. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently lower than usual for DISCA.
In a volatile session, prices traded above the previous day's high as well as below the prior day's low, forming a bullish Outside Bar. The last time this happened on Monday, DISCA gained 2.68% on the following trading day. Additionally, two candlestick patterns are matching today's price action, the White Candle which is known as bullish pattern and one bearish pattern, the Last Engulfing Top Pattern.
Prices are trading close to the key technical resistance level at 27.66 (R1). After having been unable to move lower than 26.57 in the previous session, Discovery found buyers again around the same price level today at 26.50.
The market shows strength in the short-term supported by its long-term uptrend with only the medium-term trend being bearish.
Buying might speed up should prices move above the close-by swing high at 27.70 where further buy stops could get activated.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bullish Outside Bar" stand out. Its common bullish interpretation has been confirmed for Discovery. Out of 124 times, DISCA closed higher 59.68% 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 10 trading days, showing a win rate of 58.87% with an average market move of 1.28%.