FOXA finds buyers around 27.47 for the third day in a row
Twenty-First Century Fox Inc. (FOXA) Technical Analysis Report for May 22, 2020 | by Techniquant Editorial Team
FOXA ended the week 6.68% higher at 27.80 after gaining $0.18 (0.65%) today on low volume, slightly outperforming the Nasdaq 100 (0.38%) ahead of tomorrow's Memorial Day market holiday. Closing within the prior day's range, prices missed to decisively move beyond the previous day's trading range in a lackluster session.
Daily Candlestick Chart (FOXA as at May 22, 2020):
Friday's trading range has been $0.49 (1.78%), that's far below the last trading month's daily average range of $1.18. 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 FOXA. Prices continued to consolidate within a tight trading range between 27.47 and 28.43 where it has been caught now for the last three trading days.
Three candlestick patterns are matching today's price action, the Bullish Short Candle and the White Candle which are both known as bullish patterns and one bearish pattern, the Last Engulfing Top Pattern. The last time a Bullish Short Candle showed up on April 29th, FOXA actually lost -8.81% on the following trading day.
Prices are trading close to the key technical resistance level at 28.43 (R1). The stock found buyers again today around 27.47 for the third trading day in a row after having found demand at 27.56 in the prior session and at 27.63 two days ago.
Although still in a long-term downtrend, the short and medium-term trends both turned bullish already.
Buying might speed up should prices move above the close-by swing high at 28.43 where further buy stops could get triggered. Further buying might move prices higher should the market test April's nearby high at 28.62.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Last Engulfing Top Pattern" stand out. Its common bearish interpretation has been confirmed for Twenty-First Century. Out of 6 times, FOXA closed lower 83.33% 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 83.33% with an average market move of -1.68%.