LBTYK fails to close above 50-day moving average
Liberty Global plc (LBTYK) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, LBTYK ended Wednesday at 21.92 surging $0.53 (2.48%) on high volume, strongly outperforming the Nasdaq 100 (-1.67%). This is the biggest single-day gain in over three weeks.
Daily Candlestick Chart (LBTYK as at Sep 16, 2020):
Wednesday's trading range has been $0.79 (3.66%), that's far above the last trading month's daily average range of $0.57. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for LBTYK.
Liberty Global managed to close back above the 100-day moving average at 21.74 for the first time since September 9th. After spiking up to 22.33 during the day, the stock found resistance at the 50-day moving average at 22.23. The last time this happened on August 25th, LBTYK actually gained 2.57% on the following trading day.
Although still in a long-term uptrend, the short and medium-term trends both turned bearish already.
Further selling might move prices lower should the market test August's nearby low at 21.01.
Among the eight market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "3 Consecutive Higher Closes" stand out. Its common bullish interpretation has been confirmed for Liberty Global. Out of 151 times, LBTYK closed higher 54.97% 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 58.94% with an average market move of 0.66%.