DISCA dominated by bears dragging the market lower throughout the day
Discovery Inc. Series A Common Stock (DISCA) Technical Analysis Report for Jul 07, 2020 | by Techniquant Editorial Team
DISCA ended Tuesday at 20.36 losing $0.88 (-4.14%), strongly underperforming the S&P 500 (-1.08%). The bears were in full control today, moving the market lower throughout the whole session. Closing below Monday's low at 20.73, Discovery confirmed its breakout through the previous session low after trading up to $0.46 below it intraday.
Daily Candlestick Chart (DISCA as at Jul 07, 2020):
Tuesday's trading range has been $0.80 (3.8%), that's below the last trading month's daily average range of $1.11. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for DISCA.
Two candlestick patterns are matching today's price action, the Bullish Hikkake Pattern which is known as bullish pattern and one bearish pattern, the Black Candle. The last time a Bullish Hikkake Pattern showed up on May 11th, DISCA actually lost -2.71% on the following trading day.
Prices broke below the key technical support level at 20.89 (now R1), which is likely to act as resistance going forward.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Trading close to May's low at 18.56 we might see further downside momentum if potential sell stops at the level get triggered.