DISCK runs into sellers again around 19.67
Discovery Inc. (DISCK) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team
DISCK finished Thursday at 18.75 edging lower $0.07 (-0.37%), notably underperforming the S&P 500 (6.24%). Closing within the prior day's range, prices missed to decisively move beyond the previous day's trading range.
Daily Candlestick Chart (DISCK as at Mar 26, 2020):
Thursday's trading range has been $1.51 (7.87%), that's slightly below the last trading month's daily average range of $1.73. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently higher than usual for DISCK.
During the whole day, prices traded within the prior day's range, unable to trade above the previous day's high or below the prior day's low forming an Inside Bar. Additionally, one bearish candlestick pattern matches today's price action, the Bearish Spinning Top.
Prices are trading close to the key technical resistance level at 19.80 (R1). After having been unable to move above 19.80 in the previous session, the share ran into sellers again around the same price level today, failing to move higher than 19.67. The last time this happened on March 11th, DISCK lost -7.83% on the following trading day.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Buying might speed up should prices move above the nearby swing high at 19.80 where further buy stops could get activated.
Among the three market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Close to Swing High" stand out. While it is usually interpreted as neutral, it has actually shown to be bullish for Discovery. Out of 730 times, DISCK closed higher 50.41% 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 eight trading days, showing a win rate of 53.01% with an average market move of 0.03%.