DISCA unable to break through key resistance level
Discovery Inc. Series A Common Stock (DISCA) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team
DISCA ended Thursday at 20.93 edging lower $0.13 (-0.62%), notably underperforming the S&P 500 (6.24%). Closing within the prior day's range, prices missed to decisively move beyond the previous day's trading range.
Daily Candlestick Chart (DISCA as at Mar 26, 2020):
Thursday's trading range has been $1.96 (9.08%), that's slightly above the last trading month's daily average range of $1.95. Weekly volatility is also higher, being slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for DISCA.
During the whole day, prices traded within the prior day's range, unable to trade above the previous day's high or below the prior day's low forming an Inside Bar.
Prices are trading close to the key technical support level at 19.29 (S1). Unable to break through the key technical resistance level at 21.97 (R1), Discovery closed below it after spiking up to 22.04 earlier during the day. The failure to close above the resistance could increase that levels significance going forward. After having been unable to move above 22.20 in the previous session, the stock ran into sellers again around the same price level today, failing to move higher than 22.04. The last time this happened on March 20th, DISCA lost -1.44% on the following trading day.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Buying might speed up should prices move above the close-by swing high at 22.20 where further buy stops could get triggered.
Among the three market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "High close to prior High" stand out. Although it is usually interpreted as bearish, it has actually shown to be bullish for Discovery. Out of 562 times, DISCA closed higher 51.60% of the time on the next trading day after the market condition occurred.