NWS rises to highest close since August 17th
News Corporation (NWS) Technical Analysis Report for Nov 09, 2018 | by Techniquant Editorial Team
Moving higher for the 4th day in a row, NWS ended the week 7.78% higher at 14.40 after gaining $0.09 (0.63%) today, notably outperforming the S&P 500 (-0.92%). Today's close at 14.40 marks the highest recorded closing price since August 17th. Closing above Thursday's high at 14.34, the stock confirmed its breakout through the prior session high after trading up to $0.20 above it intraday.
Daily Candlestick Chart (NWS as at Nov 09, 2018):
Friday's trading range has been $0.27 (1.89%), that's slightly below the last trading month's daily average range of $0.32. Things look different on the weekly timeframe, where the market's trading range of the last week has been way above the market's average weekly trading range. The longer-term, monthly volatility is currently significantly higher than usual for NWS.
Prices are trading close to the key technical support level at 14.20 (S1).
With another close above the upper Bollinger Band, prices are confirming their strong upward momentum in the short-term. A drop back into the Bollinger Band on the next trading day though could signal a potential change in momentum that might lead to a correction back down towards the center of the Bollinger Bands at 13.37.
Although still in a long-term downtrend, the short and medium-term trends both turned bullish already.
Among the three market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Closed above last periods high" stand out. While it is usually interpreted as bullish, it has actually shown to be bearish for News. Out of 221 times, NWS closed lower 54.75% 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 55.66% with an average market move of -0.41%.