LILA closes above its opening price after recovering from early selling pressure
Liberty Latin America Ltd. (LILA) Technical Analysis Report for May 22, 2020 | by Techniquant Editorial Team
LILA ended the week 4.96% higher at 9.53 after gaining $0.25 (2.69%) today on low volume, significantly outperforming the S&P 500 (0.24%) ahead of tomorrow's Memorial Day market holiday. Trading up to $0.28 lower after the open, the market managed to reverse during the session as bulls took control ending the day above its opening price. Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (LILA as at May 22, 2020):
Friday's trading range has been $0.50 (5.37%), that's slightly below the last trading month's daily average range of $0.53. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for LILA. Prices continued to consolidate within a tight trading range between 9.03 and 9.87 where it has been caught now for the whole last trading week.
The share ran into sellers again today around 9.53 for the third trading day in a row after having found sellers at 9.61 in the previous session and at 9.59 two days ago. The last time this happened on May 15th, LILA actually gained 6.94% on the following trading day.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Buying could accelerate should prices move above the nearby swing high at 9.61 where further buy stops might get activated.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "High close to prior two Highs" stand out. Its common bearish interpretation has been confirmed for Liberty Latin. Out of 66 times, LILA closed lower 57.58% 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 74.24% with an average market move of -2.76%.