LBTYA finds buyers at key support level
Liberty Global plc Class A Ordinary Shares (LBTYA) Technical Analysis Report for Jul 31, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, LBTYA ended the month 7.09% higher at 23.41 after losing $0.16 (-0.68%) today on high volume, notably underperforming the Nasdaq 100 (1.78%). Closing within the previous day's range, prices missed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (LBTYA as at Jul 31, 2020):
Friday's trading range has been $0.50 (2.12%), that's slightly below the last trading month's daily average range of $0.59. Things look different on the weekly timeframe, where the market's trading range of the last week has been above the market's average weekly trading range. The longer-term, monthly volatility is currently lower than usual for LBTYA.
After trading down to 23.20 earlier during the day, Liberty Global bounced off the key technical support level at 23.35 (S1). The failure to close below the support could increase that levels importance as support going forward. When prices bounced off a significant support level the last time on Wednesday, LBTYA actually lost -1.63% on the following trading day. After having been unable to move above 23.79 in the previous session, the share ran into sellers again around the same price level today, failing to move higher than 23.70.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Among the three market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bounced off Technical Support S1" stand out. Its common bullish interpretation has been confirmed for Liberty Global. Out of 424 times, LBTYA closed higher 54.72% 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 53.54% with an average market move of 0.33%.