LILAK snaps to lowest close ever
Liberty Latin America Ltd. (LILAK) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team
Moving lower for the 5th day in a row, LILAK finished Wednesday at 8.02 losing $0.26 (-3.14%) on high volume, significantly underperforming the S&P 500 (-0.46%). Today's close at 8.02 marks the lowest recorded closing price ever. The bears were in full control today, moving the market lower throughout the whole session. Closing below Tuesday's low at 8.21, the market confirmed its breakout through the prior session low after trading up to $0.20 below it intraday.
Daily Candlestick Chart (LILAK as at Sep 16, 2020):
Wednesday's trading range has been $0.44 (5.21%), that's slightly above the last trading month's daily average range of $0.42. Weekly volatility is also higher, being way above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for LILAK.
One bearish candlestick pattern matches today's price action, the Black Candle.
With another close below the lower Bollinger Band, prices are confirming their strong downward momentum in the short-term. A rally back into the Bollinger Band on the next trading day though might signal a potential change in momentum that could lead to a correction back up towards the center of the Bollinger Bands at 9.29.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Among the eight market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "5 Consecutive Lower Closes" stand out. Its common bearish interpretation has been confirmed for Liberty Latin. Out of 21 times, LILAK closed lower 71.43% 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 57.14% with an average market move of -4.36%.