LILA closes lower for the 5th day in a row
Liberty Latin America Ltd. (LILA) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team
Moving lower for the 5th day in a row, LILA finished Wednesday at 8.15 losing $0.22 (-2.63%), significantly underperforming the S&P 500 (-0.46%). Today's close at 8.15 marks the lowest recorded closing price ever. The bears were in full control today, moving the market lower throughout the whole session. Closing below Tuesday's low at 8.31, the stock confirmed its breakout through the prior session low after trading up to $0.16 below it intraday.
Daily Candlestick Chart (LILA as at Sep 16, 2020):
Wednesday's trading range has been $0.30 (3.57%), that's below the last trading month's daily average range of $0.39. Things look different on the weekly timeframe, where the market's trading range of the last week has been way above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for LILA.
Two candlestick patterns are matching today's price action, the Bearish Short Candle and the Black Candle which are both known as bearish patterns. The last time a Bearish Short Candle showed up on August 21st, LILA actually gained 3.03% on the following trading day.
With another close below the lower Bollinger Band, prices are confirming their strong downward momentum in the short-term. A rally back into the Bollinger Band on the next trading day although might signal a potential change in momentum that could lead to a correction back up towards the center of the Bollinger Bands at 9.02.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
With prices trading close to this year's low at 7.74, downside momentum might speed up should Liberty Latin break out to new lows for the year.
Among the eight market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "5 Consecutive Lower Closes" stand out. Its common bearish interpretation has been confirmed for Liberty Latin. Out of 18 times, LILA closed lower 61.11% 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 50.00% with an average market move of -3.05%.