NWS closes within previous day's range after lackluster session
News Corporation (NWS) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team
NWS ended Thursday at 9.16 gaining $0.55 (6.39%) on low volume, slightly outperforming the S&P 500 (6.24%). The bulls were in full control today, moving the market higher throughout the whole session. Closing within the prior day's range, prices missed to decisively move beyond the previous day's trading range in a lackluster session.
Daily Candlestick Chart (NWS as at Mar 26, 2020):
Thursday's trading range has been $0.64 (7.39%), that's below the last trading month's daily average range of $0.79. Weekly volatility is also lower, being way below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for NWS. Prices continued to consolidate within a tight trading range between 7.92 and 9.30 where it has been caught now for the whole last trading week.
One bullish candlestick pattern matches today's price action, the White Candle. The last time a White Candle showed up on March 16th, NWS gained 4.28% on the following trading day.
Prices are trading close to the key technical resistance level at 9.38 (R1). After having been unable to move above 9.20 in the prior session, the share ran into sellers again around the same price level today, failing to move higher than 9.30.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Among the four market conditions that our pattern recognition engine identified today, the statistics for the Technical Indicators based market condition "RSI(2) above 80" stand out. Its common bearish interpretation has been confirmed for News. Out of 199 times, NWS closed lower 49.25% 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 56.28% with an average market move of -0.32%.