DISCK runs into sellers around 18.96 for the third day in a row
Discovery Inc. (DISCK) Technical Analysis Report for Jul 31, 2020 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, DISCK finished the month -1.61% lower at 18.95 after edging higher $0.03 (0.16%) today, underperforming the S&P 500 (0.77%). Trading up to $0.14 lower after the open, the share managed to reverse during the session as bulls took control ending the day above its opening price. Closing within the previous day's range, prices missed to decisively move beyond the prior day's trading range in a lackluster session.
Daily Candlestick Chart (DISCK as at Jul 31, 2020):
Friday's trading range has been $0.37 (1.98%), that's far below the last trading month's daily average range of $0.67. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for DISCK. Prices continued to consolidate within a tight trading range between 18.20 and 19.00 where it has been caught now for the whole last trading week.
During the whole day, prices traded within the previous day's range, unable to trade above the prior day's high or below the previous day's low forming an Inside Bar. Additionally, two candlestick patterns are matching today's price action, the Bullish Short Candle and the White Candle which are both known as bullish patterns.
Prices are trading close to the key technical resistance level at 19.04 (R1). The stock ran into sellers again today around 18.96 for the third trading day in a row after having found sellers at 19.00 in the prior session and at 18.97 two days ago. The last time this happened on July 22nd, DISCK actually gained 1.00% on the following trading day.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Buying could speed up should prices move above the close-by swing high at 19.00 where further buy stops might get activated. Selling could accelerate should prices move below the nearby swing low at 18.39 where further sell stops might get triggered. As prices are trading close to July's high at 19.89, upside momentum could speed up should the market mark new highs for the month.
Among the 10 market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "3 Consecutive Higher Closes" stand out. Its common bullish interpretation has been confirmed for Discovery. Out of 160 times, DISCK closed higher 58.13% 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 54.38% with an average market move of 0.32%.