FOX pushes through key technical resistance level
Twenty-First Century Fox Inc. (FOX) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, FOX finished Thursday at 24.60 gaining $1.26 (5.4%) on low volume, slightly underperforming the Nasdaq 100 (5.72%). The bulls were in full control today, moving the market higher throughout the whole session. Closing above Wednesday's high at 24.54, the market confirmed its breakout through the previous session high after trading up to $0.24 above it intraday.
Daily Candlestick Chart (FOX as at Mar 26, 2020):
Thursday's trading range has been $1.32 (5.63%), that's below the last trading month's daily average range of $1.93. 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 just the same than usual for FOX.
Two candlestick patterns are matching today's price action, the Bullish Short Candle and the White Candle which are both known as bullish patterns. The last time a Bullish Short Candle showed up on January 15th, FOX gained 3.91% on the following trading day.
Buyers managed to take out the key technical resistance level at 24.44 (now S1), which is likely to act as support going forward. After having been unable to move above 24.54 in the prior session, the stock ran into sellers again around the same price level today, missing to move higher than 24.78.
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 Price Action based market condition "Decisive Up Move" stand out. While it is usually interpreted as bullish, it has actually shown to be bearish for Twenty-First Century. Out of 31 times, FOX closed lower 61.29% 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 67.74% with an average market move of -4.06%.