LBTYK finds support at 20-day moving average
Liberty Global plc (LBTYK) Technical Analysis Report for Jul 31, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, LBTYK ended the month 5.81% higher at 22.76 after losing $0.24 (-1.04%) today, notably underperforming the Nasdaq 100 (1.78%). Closing below Thursday's low at 22.88, Liberty Global confirmed its breakout through the previous session low after trading up to $0.31 below it intraday.
Daily Candlestick Chart (LBTYK as at Jul 31, 2020):
Friday's trading range has been $0.60 (2.6%), that's slightly above the last trading month's daily average range of $0.58. Weekly volatility is also higher, being above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for LBTYK.
One bearish candlestick pattern matches today's price action, the Black Candle.
After trading as low as 22.57 during the day, the stock found support at the 20-day moving average at 22.67. The last time this happened on July 23rd, LBTYK actually lost -0.81% on the following trading day. Prices are trading close to the key technical resistance level at 23.02 (R1). After having been unable to move above 23.24 in the prior session, the share ran into sellers again around the same price level today, missing to move higher than 23.17.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
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. Though it is usually interpreted as bullish, it has actually shown to be bearish for Liberty Global. Out of 59 times, LBTYK closed lower 61.02% 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 -1.01%.