DISCA breaks back below 100-day moving average
Discovery Inc. Series A Common Stock (DISCA) Technical Analysis Report for Aug 07, 2020 | by Techniquant Editorial Team
DISCA ended the week -0.57% lower at 20.98 after losing $0.65 (-3.01%) today on high volume, significantly underperforming the S&P 500 (0.06%). Closing below Thursday's low at 21.07, Discovery confirmed its breakout through the prior session low after trading up to $0.19 below it intraday.
Daily Candlestick Chart (DISCA as at Aug 07, 2020):
Friday's trading range has been $1.02 (4.73%), that's above the last trading month's daily average range of $0.83. Weekly volatility is also higher, being slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for DISCA.
In a volatile session, prices traded above the previous day's high as well as below the prior day's low, forming a bearish Outside Bar. The last time this happened on Wednesday, DISCA actually gained 2.41% on the following trading day. Additionally, one bearish candlestick pattern matches today's price action, the Black Candle.
The share closed back below the 100-day moving average at 21.26. After having been unable to move above 21.79 in the previous session, the market ran into sellers again around the same price level today, failing to move higher than 21.90.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Among the nine market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bearish Break through SMA 20" stand out. Its common bearish interpretation has been confirmed for Discovery. Out of 142 times, DISCA closed lower 52.82% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the short side has been after 10 trading days, showing a win rate of 54.93% with an average market move of -0.21%.