FWONA finds buyers again around 30.29
Liberty Media Corporation Series A (FWONA) Technical Analysis Report for May 22, 2020 | by Techniquant Editorial Team
FWONA ended the week 8.07% higher at 30.94 after gaining $0.61 (2.01%) today on low volume, significantly outperforming the S&P 500 (0.24%) ahead of tomorrow's Memorial Day market holiday. The bulls were in full control today, moving the market higher throughout the whole session. 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 (FWONA as at May 22, 2020):
Friday's trading range has been $0.73 (2.4%), that's far below the last trading month's daily average range of $1.51. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently lower than usual for FWONA.
Two candlestick patterns are matching today's price action, the Bullish Short Candle and the White Candle which are both known as bullish patterns.
Buyers managed to take out the key technical resistance level at 30.57 (now S1), which is likely to act as support going forward. The last time this happened on May 15th, FWONA gained 8.63% on the following trading day. After having been unable to move lower than 30.33 in the prior session, the market found buyers again around the same price level today at 30.29.
While still in a long-term downtrend, the short and medium-term trends both turned bullish already.
Buying could speed up should prices move above the nearby swing high at 32.21 where further buy stops might get activated.
Among the eight market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bullish Short Candle" stand out. Its common bullish interpretation has been confirmed for Liberty Media. Out of 63 times, FWONA closed higher 53.97% 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 65.08% with an average market move of 2.10%.