LGF-B closes below its opening price unable to hold early session gains
Lions Gate Entertainment Corporation Class B Non-Voting Shares (LGF-B) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, LGF-B finished Thursday at 5.86 losing $0.15 (-2.5%) on low volume, strongly underperforming the S&P 500 (6.24%). Trading $0.26 higher after the open, the market 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 missed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (LGF-B as at Mar 26, 2020):
Thursday's trading range has been $0.55 (9.14%), that's slightly below the last trading month's daily average range of $0.68. 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-B.
Prices are trading close to the key technical support level at 5.64 (S1). After having been unable to move lower than 5.76 in the previous session, Lions Gate found buyers again around the same price level today at 5.73. The last time this happened on March 16th, LGF-B gained 12.64% on the following trading day.
Although the share is experiencing a short-term uptrend, this could just be a correction, as both the medium and long-term trends are still bearish.
Selling might speed up should prices move below the close-by swing low at 5.64 where further sell stops could get activated.
Among the four market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "2 Consecutive Lower Closes" stand out. Its common bearish interpretation has been confirmed for Lions Gate. Out of 99 times, LGF-B closed lower 60.61% 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 52.53% with an average market move of -1.18%.