NWS pushes through Thursday's high
News Corporation (NWS) Technical Analysis Report for Feb 14, 2020 | by Techniquant Editorial Team
Moving higher for the 4th day in a row, NWS ended the week 3.74% higher at 14.98 after gaining $0.17 (1.15%) today on low volume, outperforming the S&P 500 (0.18%) ahead of tomorrow's Presidents' Day market holiday. Today's close at 14.98 marks the highest recorded closing price since January 17th. Closing above Thursday's high at 14.83, the share confirmed its breakout through the prior session high after trading up to $0.19 above it intraday.
Daily Candlestick Chart (NWS as at Feb 14, 2020):
Friday's trading range has been $0.28 (1.89%), that's slightly below the last trading month's daily average range of $0.31. Things look different on the weekly timeframe, where the market's trading range of the last week has been above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for NWS.
Two candlestick patterns are matching today's price action, the White Candle which is known as bullish pattern and one bearish pattern, the Bearish Hikkake Pattern. The last time a Bearish Hikkake Pattern showed up on Tuesday, NWS actually gained 2.21% on the following trading day.
Prices are trading close to the key technical resistance level at 15.11 (R1).
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
With prices trading close to this year's high at 15.36, upside momentum could speed up should the market be able to break out to new highs for the year.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "4 Consecutive Higher Closes" stand out. Although it is usually interpreted as bullish, it has actually shown to be bearish for News. Out of 45 times, NWS closed lower 57.78% 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 nine trading days, showing a win rate of 48.89% with an average market move of 0.03%.