LBTYK closes within previous day's range
Liberty Global plc (LBTYK) Technical Analysis Report for May 29, 2020 | by Techniquant Editorial Team
LBTYK ended the month 12.67% higher at 20.63 after gaining $0.06 (0.29%) today, strongly underperforming the Nasdaq 100 (1.47%). 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 May 29, 2020):
Friday's trading range has been $0.53 (2.58%), that's slightly below the last trading month's daily average range of $0.87. Weekly volatility is also lower, being way below the market's average weekly trading range. The longer-term, monthly volatility is currently lower than usual for LBTYK. Prices continued to consolidate within a tight trading range between 20.33 and 21.21 where it has been caught now for the whole last trading week.
In a volatile session, prices traded above the prior day's high as well as below the previous day's low, forming a bullish Outside Bar. The last time this happened on March 17th, LBTYK actually lost -3.77% on the following trading day. Additionally, one bullish candlestick pattern matches today's price action, the Bullish Spinning Top.
Prices are trading close to the key technical support level at 20.33 (S1). After having been unable to move lower than 20.54 in the prior session, the share found buyers again around the same price level today at 20.48.
The stock shows weakness in the short-term (in accordance with its long-term downtrend) with only the medium-term trend still being bullish.
Buying might accelerate should prices move above the close-by swing high at 21.21 where further buy stops could get triggered. Selling might speed up should prices move below the nearby swing low at 20.33 where further sell stops could get activated.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bullish Spinning Top" stand out. Its common bullish interpretation has been confirmed for Liberty Global. Out of 208 times, LBTYK closed higher 51.92% 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 52.88% with an average market move of 0.18%.