DISCK pushes through Tuesday's high
Discovery Inc. (DISCK) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, DISCK finished Wednesday at 22.13 gaining $0.51 (2.36%), notably outperforming the S&P 500 (-0.46%). Today's close at 22.13 marks the highest recorded closing price since June 8th. Closing above Tuesday's high at 21.92, the share confirmed its breakout through the previous session high after trading up to $0.66 above it intraday.
Daily Candlestick Chart (DISCK as at Sep 16, 2020):
Wednesday's trading range has been $0.75 (3.43%), that's slightly above the last trading month's daily average range of $0.65. Weekly volatility is also higher, being above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for DISCK.
Crossing above the upper Bollinger Band for the first time since Monday, prices have shown unusually strong upward momentum in the short-term. This might either indicate a potential buying climax after which prices could head back down towards the mean of the Bollinger Bands at 20.57 or signal the beginning of a strong momentum breakout leading to even higher prices. The last time prices broke out above the upper Bollinger Band on Monday, DISCK gained 0.14% on the following trading day.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Among the four 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 159 times, DISCK closed higher 57.86% 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 54.72% with an average market move of 0.30%.