LILAK finds buyers at key support level
Liberty Latin America Ltd. (LILAK) Technical Analysis Report for Apr 16, 2019 | by Techniquant Editorial Team
LILAK finished Tuesday at 20.48 losing $0.32 (-1.54%), notably underperforming the S&P 500 (0.05%). The bears were in full control today, moving the market lower throughout the whole session. Closing within the prior day's range, prices missed to decisively move beyond the previous day's trading range.
Daily Candlestick Chart (LILAK as at Apr 16, 2019):
Tuesday's trading range has been $0.63 (3.01%), that's slightly above the last trading month's daily average range of $0.58. Things look different on the weekly timeframe, where the market's trading range of the last week has been way below the market's average weekly trading range. The longer-term, monthly volatility is currently higher than usual for LILAK. Prices continued to consolidate within a tight trading range between 20.34 and 20.97 where it has been caught now for the last three trading days.
In a volatile session, prices traded above the prior day's high as well as below the previous day's low, forming a bearish Outside Bar. Regardless of a strong opening the stock closed below the prior day's open and close, forming a bearish Engulfing Candle. The last time this candlestick pattern showed up on January 30th, LILAK actually gained 7.90% on the following trading day. Additionally, one bearish candlestick pattern matches today's price action, the Black Candle.
After trading down to 20.34 earlier during the day, the share bounced off the key technical support level at 20.39 (S1). The failure to close below the support might increase that levels importance as support going forward. The market found buyers again today around 20.34 for the third trading day in a row after having found demand at 20.41 in the previous session and at 20.39 two days ago.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Among the eight market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bearish Engulfing Candle" stand out. Its common bearish interpretation has been confirmed for Liberty Latin. Out of 27 times, LILAK closed lower 59.26% 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 70.37% with an average market move of -2.53%.