LILA unable to break through key resistance level
Liberty Latin America Ltd. (LILA) Technical Analysis Report for Jul 31, 2020 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, LILA finished the month 5.76% higher at 10.28 after gaining $0.24 (2.39%) today on high volume, notably outperforming the S&P 500 (0.77%). Today's close at 10.28 marks the highest recorded closing price since July 6th. Closing above Thursday's high at 10.06, the market confirmed its breakout through the prior session high after trading up to $0.53 above it intraday.
Daily Candlestick Chart (LILA as at Jul 31, 2020):
Friday's trading range has been $0.60 (5.99%), that's above the last trading month's daily average range of $0.43. Weekly volatility is also higher, being above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for LILA.
Liberty Latin managed to close above the 100-day moving average at 10.16 for the first time since February 21st. Unable to break through the key technical resistance level at 10.55 (R1), the share closed below it after spiking up to 10.59 earlier during the day. The failure to close above the resistance could increase that levels importance going forward.
Crossing above the upper Bollinger Band for the first time since June 8th, prices have shown unusually strong upward momentum in the short-term. This might either indicate a potential buying climax after which prices could head back down towards the mean of the Bollinger Bands at 9.69 or signal the beginning of a strong momentum breakout leading to even higher prices. The last time prices broke out above the upper Bollinger Band on June 5th, LILA gained 7.32% on the following trading day.
Though still in a long-term downtrend, the short and medium-term trends both turned bullish already.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the Technical Indicators based market condition "Close crossed above the upper Bollinger Band" stand out. Its common bullish interpretation has been confirmed for Liberty Latin. Out of 23 times, LILA closed higher 65.22% 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 52.17% with an average market move of 0.54%.