DISCA pushes through key technical resistance level
Discovery Inc. Series A Common Stock (DISCA) Technical Analysis Report for Jun 29, 2020 | by Techniquant Editorial Team
DISCA ended Monday at 21.23 gaining $0.97 (4.79%), notably outperforming the S&P 500 (1.47%). The bulls were in full control today, moving the market higher throughout the whole session. Closing above Friday's high at 21.17, Discovery confirmed its breakout through the previous session high after trading up to $0.13 above it intraday.
Daily Candlestick Chart (DISCA as at Jun 29, 2020):
Monday's trading range has been $1.17 (5.76%), that's slightly above the last trading month's daily average range of $1.17. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for DISCA.
One bullish candlestick pattern matches today's price action, the White Candle.
Buyers managed to take out the key technical resistance level at 20.71 (now S1), which is likely to act as support going forward. The last time this happened on May 27th, DISCA actually lost -2.87% on the following trading day. Prices are trading close to the key technical resistance level at 21.81 (R1). After having been unable to move above 21.17 in the prior session, the stock ran into sellers again around the same price level today, missing to move higher than 21.30.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Decisive Up Move" stand out. Its common bullish interpretation has been confirmed for Discovery. Out of 317 times, DISCA closed higher 53.31% 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 56.47% with an average market move of 0.15%.