LILAK closes higher for the 4th day in a row
Liberty Latin America Ltd. (LILAK) Technical Analysis Report for Jul 31, 2020 | by Techniquant Editorial Team
Moving higher for the 4th day in a row, LILAK ended the month 8.37% higher at 10.23 after gaining $0.25 (2.51%) today on high volume, significantly outperforming the S&P 500 (0.77%). Today's close at 10.23 marks the highest recorded closing price since July 6th. Closing above Thursday's high at 10.01, the stock confirmed its breakout through the prior session high after trading up to $0.55 above it intraday.
Daily Candlestick Chart (LILAK as at Jul 31, 2020):
Friday's trading range has been $0.77 (7.79%), that's far above the last trading month's daily average range of $0.46. Weekly volatility is also higher, being above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for LILAK.
Buyers managed to take out the key technical resistance level at 10.15 (now S1), which is likely to act as support going forward.
Crossing above the upper Bollinger Band for the first time since June 8th, prices have shown unusually strong upward momentum in the short-term. This could either indicate a potential buying climax after which prices might head back down towards the mean of the Bollinger Bands at 9.53 or signal the beginning of a strong momentum breakout leading to even higher prices. The last time prices broke out above the upper Bollinger Band on June 5th, LILAK gained 6.57% on the following trading day.
Although still in a long-term downtrend, the short and medium-term trends both turned bullish already.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the Technical Indicators based market condition "Close crossed above the upper Bollinger Band" stand out. Its common bullish interpretation has been confirmed for Liberty Latin. Out of 24 times, LILAK closed higher 79.17% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the long side has been after four trading days, showing a win rate of 54.17% with an average market move of 0.15%.