NWS closes above its opening price after recovering from early selling pressure
News Corporation (NWS) Technical Analysis Report for May 22, 2020 | by Techniquant Editorial Team
NWS finished the week 5.63% higher at 11.63 after gaining $0.08 (0.69%) today on low volume, slightly outperforming the S&P 500 (0.24%) ahead of tomorrow's Memorial Day market holiday. Trading up to $0.05 lower after the open, the share managed to reverse during the session as bulls took control ending the day above its opening price. The last time this happened on May 15th, NWS gained 2.45% on the following trading day. Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range in a lackluster session.
Daily Candlestick Chart (NWS as at May 22, 2020):
Friday's trading range has been $0.15 (1.3%), that's far below the last trading month's daily average range of $0.44. Weekly volatility is also lower, being way below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for NWS. Prices continued to consolidate within a tight trading range between 11.15 and 11.69 where it has been caught now for the whole last trading week.
One bearish candlestick pattern matches today's price action, the Bearish Hikkake Pattern.
The market ran into sellers again today around 11.68 for the third trading day in a row after having found sellers at 11.67 in the previous session and at 11.69 two days ago.
Although still in a long-term downtrend, the short and medium-term trends both turned bullish already.
Buying could accelerate should prices move above the close-by swing high at 11.69 where further buy stops might get triggered. Selling could speed up should prices move below the nearby swing low at 11.15 where further sell stops might get activated.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "High close to prior two Highs" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for News. Out of 91 times, NWS closed higher 54.95% of the time on the next trading day after the market condition occurred.