LILAK finds buyers at key support level
Liberty Latin America Ltd. (LILAK) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team
LILAK ended Thursday at 11.87 gaining $0.98 (9.0%) on low volume, significantly outperforming the S&P 500 (6.24%). Trading up to $1.20 lower after the open, Liberty Latin managed to reverse during the session as bulls took control ending the day above its opening price. Closing above Wednesday's high at 11.39, the share confirmed its breakout through the prior session high after trading up to $0.53 above it intraday.
Daily Candlestick Chart (LILAK as at Mar 26, 2020):
Thursday's trading range has been $2.04 (18.41%), that's far above the last trading month's daily average range of $1.16. Weekly volatility is also higher, being slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for LILAK.
In a volatile session, prices traded above the previous day's high as well as below the prior day's low, forming a bullish Outside Bar. The last time this happened on Monday, LILAK gained 10.48% on the following trading day.
After trading down to 9.88 earlier during the day, the stock bounced off the key technical support level at 10.64 (S1). The failure to close below the support could increase that levels importance as support going forward.
While the market is experiencing a short-term uptrend, this might just be a correction, as both the medium and long-term trends are still bearish.