LBTYK finds buyers at key support level
Liberty Global plc (LBTYK) Technical Analysis Report for Feb 14, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, LBTYK finished the week -0.05% lower at 19.45 after tanking $0.80 (-3.95%) today, notably 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 last time we've seen such an unusually strong single-day loss on January 21st, LBTYK lost -1.33% on the following trading day. Closing below Thursday's low at 20.01, the market confirmed its breakout through the prior session low after trading up to $0.93 below it intraday.
Daily Candlestick Chart (LBTYK as at Feb 14, 2020):
Friday's trading range has been $1.17 (5.83%), 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 LBTYK.
One bearish candlestick pattern matches today's price action, the Black Candle.
After trading down to 19.08 earlier during the day, Liberty Global bounced off the key technical support level at 19.40 (S1). The failure to close below the support could increase that levels significance as support going forward. The share closed back below the 20-day moving average at 19.76.
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 Support/Resistance based market condition "Bearish Break through SMA 20" stand out. Its common bearish interpretation has been confirmed for Liberty Global. Out of 136 times, LBTYK closed lower 60.29% 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 56.62% with an average market move of -0.69%.