LILAK stuck within tight trading range
Liberty Latin America Ltd. (LILAK) Technical Analysis Report for May 22, 2020 | by Techniquant Editorial Team
LILAK ended the week 3.49% higher at 9.19 after gaining $0.25 (2.8%) today, strongly outperforming the S&P 500 (0.24%) ahead of tomorrow's Memorial Day market holiday. Trading up to $0.27 lower after the open, the stock managed to reverse during the session as bulls took control ending the day above its opening price. Closing within the prior day's range, prices failed to decisively move beyond the previous day's trading range.
Daily Candlestick Chart (LILAK as at May 22, 2020):
Friday's trading range has been $0.46 (5.1%), that's slightly below the last trading month's daily average range of $0.53. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for LILAK. Prices continued to consolidate within a tight trading range between 8.75 and 9.33 where it has been caught now for the last three trading days.
After moving lower in the prior session, the market managed to close higher but below the previous day's open, forming a bullish Harami Candle.
After having been unable to move lower than 8.80 in the prior session, the share found buyers again around the same price level today at 8.75. The last time this happened on Wednesday, LILAK actually lost -4.08% on the following trading day.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Buying might speed up should prices move above the close-by swing high at 9.63 where further buy stops could get triggered.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Close to Swing High" stand out. Although it is usually interpreted as neutral, it has actually shown to be bearish for Liberty Latin. Out of 330 times, LILAK closed lower 50.61% 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 55.15% with an average market move of -1.21%.