LBTYK runs into sellers again around 24.84
Liberty Global plc (LBTYK) Technical Analysis Report for Oct 12, 2018 | by Techniquant Editorial Team
LBTYK finished the week -4.84% lower at 24.78 after gaining $0.41 (1.68%) today, significantly underperforming the Nasdaq 100 (2.77%). Trading up to $0.70 lower after the open, the share managed to reverse during the session as bulls took control ending the day above its opening price. Closing within the prior day's range, prices failed to decisively move beyond the previous day's trading range.
Daily Candlestick Chart (LBTYK as at Oct 12, 2018):
Friday's trading range has been $0.87 (3.53%), that's slightly above the last trading month's daily average range of $0.80. Weekly volatility is also higher, being way above the market's average weekly trading range. The longer-term, monthly volatility is currently notably higher than usual for LBTYK.
One bullish candlestick pattern matches today's price action, the Takuri Line.
Prices are trading close to the key technical resistance level at 25.17 (R1). After having been unable to move above 24.93 in the prior session, the market ran into sellers again around the same price level today, missing to move higher than 24.84. The last time this happened on Tuesday, LBTYK lost -4.61% on the following trading day.
Crossing above the lower Bollinger Band, prices have lost at least some of their downward momentum in the short-term and could now be heading back up towards the mean of the Bollinger Bands at 26.97.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Among the eight market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "52 Week Low" stand out. While it is usually interpreted as bearish, it has actually shown to be bullish for Liberty Global. Out of 41 times, LBTYK closed higher 53.66% 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 65.85% with an average market move of 5.03%.