DISCA slides to lowest close since May 13th
Discovery Inc. Series A Common Stock (DISCA) Technical Analysis Report for Jul 08, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, DISCA ended Wednesday at 20.22 edging lower $0.14 (-0.69%), significantly underperforming the S&P 500 (0.78%). Today's close at 20.22 marks the lowest recorded closing price since May 13th. Closing below Tuesday's low at 20.27, Discovery confirmed its breakout through the prior session low after trading up to $0.28 below it intraday.
Daily Candlestick Chart (DISCA as at Jul 08, 2020):
Wednesday's trading range has been $0.45 (2.21%), that's far below the last trading month's daily average range of $1.03. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently notably lower than usual for DISCA.
Prices are trading close to the key technical resistance level at 20.71 (R1).
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.
Among the three market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "2 Consecutive Lower Closes" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for Discovery. Out of 330 times, DISCA closed higher 53.94% 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 53.33% with an average market move of 0.70%.