LILAK finds buyers again around 19.28
Liberty Latin America Ltd. (LILAK) Technical Analysis Report for Oct 12, 2018 | by Techniquant Editorial Team
LILAK finished the week -7.28% lower at 19.60 after gaining $0.27 (1.4%) today, strongly underperforming the Nasdaq 100 (2.77%). Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range in a lackluster session.
Daily Candlestick Chart (LILAK as at Oct 12, 2018):
Friday's trading range has been $0.42 (2.14%), that's below the last trading month's daily average range of $0.57. 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 lower than usual for LILAK.
Two candlestick patterns are matching today's price action, the Homing Pigeon and the Takuri Line which are both known as bullish patterns. The last time a Takuri Line showed up on August 13th, LILAK actually lost -0.47% on the following trading day.
Prices are trading close to the key technical resistance level at 19.64 (R1). After having been unable to move lower than 19.30 in the previous session, the market found buyers again around the same price level today at 19.28.
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 though could signal a potential change in momentum that might lead to a correction back up towards the center of the Bollinger Bands at 20.97.
The stock shows weakness in the short-term (in accordance with its long-term downtrend) with only the medium-term trend still being bullish.
Further selling could move prices lower should the market test September's close-by low at 19.08.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Homing Pigeon" stand out. While it is usually interpreted as bullish, it has actually shown to be bearish for Liberty Latin America. Out of 6 times, LILAK closed lower 66.67% 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 66.67% with an average market move of -1.70%.