LGF-A unable to break through key resistance level

Lions Gate Entertainment Corporation Class A (LGF-A) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team


LGF-A closes below its opening price unable to hold early session gains
LGF-A unable to break through key resistance level
LGF-A closes lower for the 2nd day in a row
LGF-A finds buyers again around 6.13
LGF-A closes within previous day's range after lackluster session


Moving lower for the 2nd day in a row, LGF-A finished Thursday at 6.29 losing $0.15 (-2.33%) on low volume, strongly underperforming the S&P 500 (6.24%). Trading $0.20 higher after the open, the share was unable to hold its gains as the bears took control ending the day below its opening price. Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range in a lackluster session.

Daily Candlestick Chart (LGF-A as at Mar 26, 2020):

Daily technical analysis candlestick chart for Lions Gate Entertainment Corporation Class A (LGF-A) as at Mar 26, 2020

Thursday's trading range has been $0.58 (8.91%), that's below the last trading month's daily average range of $0.75. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently lower than usual for LGF-A.

Unable to break through the key technical resistance level at 6.66 (R1), Lions Gate closed below it after spiking up to 6.71 earlier during the day. The failure to close above the resistance could increase that levels importance going forward. After having been unable to move lower than 6.17 in the previous session, the market found buyers again around the same price level today at 6.13. The last time this happened on March 4th, LGF-A actually lost -5.67% on the following trading day.

While the stock is experiencing a short-term uptrend, this might just be a correction, as both the medium and long-term trends are still bearish.

Selling could accelerate should prices move below the nearby swing low at 6.11 where further sell stops might get triggered.

Among the five market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Bearish Intraday Reversal" stand out. Although it is usually interpreted as bearish, it has actually shown to be bullish for Lions Gate. Out of 366 times, LGF-A closed higher 51.91% 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 54.10% with an average market move of 0.97%.

Market Conditions for LGF-A as at Mar 26, 2020

Loading Market Conditions for LGF-A (Lions Gate Entertainment Corporation Class A)...
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