LILA breaks above 20-day moving average for the first time since February 25th
Liberty Latin America Ltd. (LILA) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team
LILA finished Thursday at 12.22 gaining $1.09 (9.79%), significantly outperforming the S&P 500 (6.24%). The bulls were in full control today, moving the market higher throughout the whole session. Closing above Wednesday's high at 11.69, the share confirmed its breakout through the previous session high after trading up to $0.58 above it intraday.
Daily Candlestick Chart (LILA as at Mar 26, 2020):
Thursday's trading range has been $1.29 (11.38%), that's slightly above the last trading month's daily average range of $1.15. Weekly volatility is also higher, being slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for LILA.
One bullish candlestick pattern matches today's price action, the White Candle.
The market managed to close above the 20-day moving average at 12.04 for the first time since February 25th. After having been unable to move lower than 10.95 in the prior session, the stock found buyers again around the same price level today at 10.98. The last time this happened on Monday, LILA gained 10.18% on the following trading day.
While Liberty Latin is experiencing a short-term uptrend, this might just be a correction, as both the medium and long-term trends are still bearish.
Among the nine market conditions that our pattern recognition engine identified today, the statistics for the Technical Indicators based market condition "RSI(2) above 80" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for Liberty Latin. Out of 115 times, LILA closed higher 54.78% 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 three trading days, showing a win rate of 57.39% with an average market move of 0.42%.