LBTYA finds buyers around 16.59 for the third day in a row
Liberty Global plc Class A Ordinary Shares (LBTYA) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team
LBTYA finished Thursday at 17.54 gaining $0.70 (4.16%) on low volume, significantly underperforming the Nasdaq 100 (5.72%). Closing above Wednesday's high at 17.48, Liberty Global confirmed its breakout through the previous session high after trading up to $0.27 above it intraday.
Daily Candlestick Chart (LBTYA as at Mar 26, 2020):
Thursday's trading range has been $1.16 (6.88%), that's slightly below the last trading month's daily average range of $1.29. 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 LBTYA.
In a volatile session, prices traded above the prior day's high as well as below the previous day's low, forming a bullish Outside Bar. Additionally, one bullish candlestick pattern matches today's price action, the White Candle. The last time a White Candle showed up on Tuesday, LBTYA actually lost -2.04% on the following trading day.
Buyers managed to take out the key technical resistance level at 17.26 (now S1), which is likely to act as support going forward. Prices are trading close to the key technical resistance level at 18.26 (R1). The share found buyers again today around 16.59 for the third trading day in a row after having found demand at 16.60 in the prior session and at 16.43 two days ago.
Though the market is experiencing a short-term uptrend, this might just be a correction, as both the medium and long-term trends are still bearish.
Buying could speed up should prices move above the close-by swing high at 18.26 where further buy stops might get triggered. With prices trading close to this year's low at 15.24, downside momentum could accelerate should the stock break out to new lows for the year.
Among the nine market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Low close to previous two Lows" stand out. Its common bullish interpretation has been confirmed for Liberty Global. Out of 147 times, LBTYA closed higher 57.82% 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 55.10% with an average market move of 1.11%.