LBTYK finds support at 20-day moving average
Liberty Global plc (LBTYK) Technical Analysis Report for May 22, 2020 | by Techniquant Editorial Team
Moving lower for the 4th day in a row, LBTYK finished the week -4.07% lower at 20.49 after losing $0.04 (-0.19%) today, underperforming the Nasdaq 100 (0.38%) ahead of tomorrow's Memorial Day market holiday. Trading up to $0.15 lower after the open, Liberty Global 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 missed to decisively move beyond the previous day's trading range in a lackluster session.
Daily Candlestick Chart (LBTYK as at May 22, 2020):
Friday's trading range has been $0.34 (1.66%), that's below the last trading month's daily average range of $0.90. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for LBTYK.
Two candlestick patterns are matching today's price action, the Southern Doji which is known as bullish pattern and one neutral pattern, the Doji. The last time a Southern Doji showed up on March 16th, LBTYK gained 7.86% on the following trading day.
After trading as low as 20.33 during the day, the share found support at the 20-day moving average at 20.43.
The market shows weakness in the short-term (in accordance with its long-term downtrend) with only the medium-term trend still being bullish.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bullish Bounce off SMA 20" stand out. Although it is usually interpreted as bullish, it has actually shown to be bearish for Liberty Global. Out of 59 times, LBTYK closed lower 59.32% 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 57.63% with an average market move of -1.08%.