LILAK finds buyers at key support level
Liberty Latin America Ltd. (LILAK) Technical Analysis Report for Dec 07, 2018 | by Techniquant Editorial Team
Moving lower for the 3rd day in a row, LILAK finished the week -7.46% lower at 17.11 after losing $0.08 (-0.47%) today, but still strongly outperforming the S&P 500 (-2.33%) following today's NFP report. Today's close at 17.11 marks the lowest recorded closing price ever. Trading $0.33 higher after the open, Liberty Latin was unable to hold its gains as the bears took control ending the day below its opening price. Closing within the previous day's range, prices missed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (LILAK as at Dec 07, 2018):
Friday's trading range has been $0.65 (3.77%), that's slightly above the last trading month's daily average range of $0.57. Weekly volatility is also higher, being way above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for LILAK.
One bearish candlestick pattern matches today's price action, the Bearish Spinning Top.
After trading down to 16.92 earlier during the day, the market bounced off the key technical support level at 16.99 (S1). The failure to close below the support might increase that levels significance as support going forward. After having been unable to move lower than 16.93 in the previous session, the share found buyers again around the same price level today at 16.92. The last time this happened on November 23rd, LILAK gained 2.73% on the following trading day.
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 16.75, downside momentum could speed up should the stock break out to new lows for the year.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bearish Spinning Top" stand out. Its common bearish interpretation has been confirmed for Liberty Latin. Out of 84 times, LILAK closed lower 54.76% 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 65.48% with an average market move of -1.65%.