DISCA breaks above 100-day moving average for the first time since July 16th
Discovery Inc. Series A Common Stock (DISCA) Technical Analysis Report for Aug 03, 2020 | by Techniquant Editorial Team
DISCA finished Monday at 21.34 gaining $0.24 (1.14%), slightly outperforming the S&P 500 (0.72%). Trading up to $0.35 lower after the open, the share managed to reverse during the session as bulls took control ending the day above its opening price. Ending the day with an indecisive close, neither buyers nor sellers were able to gain control during the session.
Daily Candlestick Chart (DISCA as at Aug 03, 2020):
Monday's trading range has been $0.62 (2.93%), that's below the last trading month's daily average range of $0.76. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for DISCA.
One bearish candlestick pattern matches today's price action, the Bearish Hikkake Pattern.
The stock managed to close above the 100-day moving average at 21.28 for the first time since July 16th. When this moving average was crossed above the last time on July 16th, DISCA actually lost -2.72% on the following trading day.
Although still in a long-term downtrend, the short and medium-term trends both turned bullish already.
Selling could accelerate should prices move below the nearby swing low at 20.55 where further sell stops might get triggered. Further buying could move prices higher should the market test July's close-by high at 22.22.
Among the eight market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bullish Break through SMA 100" stand out. Its common bullish interpretation has been confirmed for Discovery. Out of 73 times, DISCA closed higher 58.90% of the time on the next trading day after the market condition occurred.