DISCK closes below its opening price unable to hold early session gains
Discovery Inc. (DISCK) Technical Analysis Report for Jun 30, 2020 | by Techniquant Editorial Team
DISCK finished the month -1.68% lower at 19.26 after edging lower $0.09 (-0.47%) today, strongly underperforming the S&P 500 (1.54%). Trading $0.16 higher after the open, the stock was unable to hold its gains as the bears took control ending the day below its opening price. Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range in a lackluster session.
Daily Candlestick Chart (DISCK as at Jun 30, 2020):
Tuesday's trading range has been $0.43 (2.23%), 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 slightly higher than usual for DISCK.
Two candlestick patterns are matching today's price action, the Southern Doji which is known as bullish pattern and one neutral pattern, the Doji. The last time a Doji showed up on June 24th, DISCK lost -2.08% on the following trading day.
Prices are trading close to the key technical support level at 18.79 (S1). Prices are trading close to the key technical resistance level at 19.80 (R1). After having been unable to move above 19.37 in the previous session, the share ran into sellers again around the same price level today, failing to move higher than 19.44.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Among the four market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Southern Doji" stand out. Its common bullish interpretation has been confirmed for Discovery. Out of 69 times, DISCK closed higher 56.52% 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 53.62% with an average market move of 0.98%.