LBTYA tanks, losing $0.78 (-3.69%) within a single day
Liberty Global plc Class A Ordinary Shares (LBTYA) Technical Analysis Report for Feb 14, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, LBTYA ended the week -0.29% lower at 20.33 after tanking $0.78 (-3.69%) today, significantly underperforming the Nasdaq 100 (0.29%) ahead of tomorrow's Presidents' Day market holiday. This is the biggest single-day loss in over three weeks. The bears were in full control today, moving the market lower throughout the whole session. Closing below Thursday's low at 20.98, the share confirmed its breakout through the previous session low after trading up to $1.03 below it intraday.
Daily Candlestick Chart (LBTYA as at Feb 14, 2020):
Friday's trading range has been $1.21 (5.72%), that's far above the last trading month's daily average range of $0.61. Weekly volatility is also higher, being above the market's average weekly trading range. The longer-term, monthly volatility is currently lower than usual for LBTYA.
One bearish candlestick pattern matches today's price action, the Black Candle.
Liberty Global closed back below the 20-day moving average at 20.73. When this moving average was crossed below the last time on February 7th, LBTYA lost -0.54% on the following trading day.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Selling might speed up should prices move below the nearby swing low at 19.73 where further sell stops could get activated. With prices trading close to this year's low at 19.69, downside momentum might accelerate should the market break out to new lows for the year.
Among the 10 market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bearish Break through SMA 20" stand out. Its common bearish interpretation has been confirmed for Liberty Global. Out of 126 times, LBTYA closed lower 62.70% 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 60.32% with an average market move of -1.18%.