HUYA closes higher for the 2nd day in a row
HUYA Inc. American depositary shares each representing one Class A (HUYA) Technical Analysis Report for Aug 13, 2019 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, HUYA finished Tuesday at 21.32 surging $0.92 (4.51%) on high volume, significantly outperforming the S&P 500 (1.51%). This is the biggest single-day gain in over three weeks. The last time we've seen such an unusually strong single-day gain on June 18th, HUYA actually lost -1.95% on the following trading day. Trading up to $0.43 lower after the open, the stock managed to reverse during the session as bulls took control ending the day above its opening price. Ending with a strong close near the high of the day sets a bullish note for the next session.
Daily Candlestick Chart (HUYA as at Aug 13, 2019):
Tuesday's trading range has been $0.80 (3.81%), that's slightly below the last trading month's daily average range of $1.02. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently just the same than usual for HUYA.
After trading down to 20.58 earlier during the day, the share bounced off the key technical support level at 20.83 (S1). The failure to close below the support could increase that levels importance as support going forward. Prices are trading close to the key technical resistance level at 22.05 (R1).
The market shows weakness in the short-term (in accordance with its long-term downtrend) with only the medium-term trend still being bullish.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Up Close near high of period" stand out. Though it is usually interpreted as bullish, it has actually shown to be bearish for HUYA. Out of 55 times, HUYA closed lower 67.27% 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 nine trading days, showing a win rate of 63.64% with an average market move of 0.56%.