FOXA finds buyers at key support level
Twenty-First Century Fox Inc. (FOXA) Technical Analysis Report for Oct 12, 2018 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, FOXA ended the week -1.63% lower at 45.36 after gaining $0.25 (0.55%) today, notably underperforming the Nasdaq 100 (2.77%). Trading up to $0.33 lower after the open, the share managed to reverse during the session as bulls took control ending the day above its opening price. Ending the day with an indecisive close, neither buyers nor sellers were able to gain control during the session.
Daily Candlestick Chart (FOXA as at Oct 12, 2018):
Friday's trading range has been $0.53 (1.17%), that's slightly below the last trading month's daily average range of $0.62. 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 slightly higher than usual for FOXA.
One bullish candlestick pattern matches today's price action, the Bullish Spinning Top. The last time a Bullish Spinning Top showed up on September 27th, FOXA gained 1.07% on the following trading day.
After trading down to 44.97 earlier during the day, Twenty-First Century bounced off the key technical support level at 45.14 (S1). The failure to close below the support could increase that levels importance as support going forward. After spiking up to 45.50 during the day, the market found resistance at the 50-day moving average at 45.36.
While the stock is currently in a short-term downtrend, this might just be a correction, as both the medium and long-term trends are still bullish.
Among the eight market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bullish Spinning Top" stand out. Its common bullish interpretation has been confirmed for Twenty-First Century. Out of 206 times, FOXA closed higher 53.40% 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 57.28% with an average market move of 0.80%.