FOX finds buyers around 27.04 for the third day in a row
Twenty-First Century Fox Inc. (FOX) Technical Analysis Report for May 22, 2020 | by Techniquant Editorial Team
FOX ended the week 7.33% higher at 27.37 after edging higher $0.14 (0.51%) today on low volume, slightly outperforming the Nasdaq 100 (0.38%) ahead of tomorrow's Memorial Day market holiday. 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 (FOX as at May 22, 2020):
Friday's trading range has been $0.44 (1.62%), that's far below the last trading month's daily average range of $1.08. Weekly volatility is also lower, being way below the market's average weekly trading range. The longer-term, monthly volatility is currently just the same than usual for FOX. Prices continued to consolidate within a tight trading range between 26.22 and 27.76 where it has been caught now for the whole last trading week.
One bullish candlestick pattern matches today's price action, the Bullish Hikkake Pattern. The last time a Bullish Hikkake Pattern showed up on May 13th, FOX gained 4.41% on the following trading day.
Prices are trading close to the key technical support level at 26.73 (S1). Twenty-First Century found buyers again today around 27.04 for the third trading day in a row after having found demand at 27.07 in the previous session and at 27.03 two days ago.
Although still in a long-term downtrend, the short and medium-term trends both turned bullish already.
Buying could accelerate should prices move above the nearby swing high at 27.76 where further buy stops might get activated. Further buying could move prices higher should the market test April's close-by high at 28.24.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the Technical Indicators based market condition "RSI(2) above 80" stand out. While it is usually interpreted as bearish, it has actually shown to be bullish for Twenty-First Century. Out of 29 times, FOX closed higher 68.97% 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 62.07% with an average market move of 0.77%.