LBTYK dominated by bulls lifting the market higher throughout the day
Liberty Global plc (LBTYK) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team
LBTYK ended Thursday at 16.77 gaining $0.85 (5.34%), slightly underperforming the Nasdaq 100 (5.72%). The bulls were in full control today, moving the market higher throughout the whole session. Closing above Wednesday's high at 16.62, the market confirmed its breakout through the prior session high after trading up to $0.30 above it intraday.
Daily Candlestick Chart (LBTYK as at Mar 26, 2020):
Thursday's trading range has been $1.24 (7.78%), that's slightly above the last trading month's daily average range of $1.20. Weekly volatility is also higher, being slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for LBTYK.
One bullish candlestick pattern matches today's price action, the White Candle. The last time a White Candle showed up on Tuesday, LBTYK actually lost -1.61% on the following trading day.
Buyers managed to take out the key technical resistance level at 16.37 (now S1), which is likely to act as support going forward. After spiking up to 16.92 during the day, the share found resistance at the 20-day moving average at 16.87. After having been unable to move lower than 15.60 in the previous session, the stock found buyers again around the same price level today at 15.68.
Although Liberty Global is experiencing a short-term uptrend, this could just be a correction, as both the medium and long-term trends are still bearish.
Buying might accelerate should prices move above the nearby swing high at 17.18 where further buy stops could get triggered. With prices trading close to this year's low at 14.63, downside momentum might speed up should LBTYK break out to new lows for the year.
Among the nine market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Closed above last periods high" stand out. Its common bullish interpretation has been confirmed for Liberty Global. Out of 475 times, LBTYK closed higher 54.11% 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 53.89% with an average market move of 0.25%.