NWS runs into sellers around 12.97 for the third day in a row
News Corporation (NWS) Technical Analysis Report for Jul 31, 2020 | by Techniquant Editorial Team
NWS finished the month 6.78% higher at 12.76 after losing $0.16 (-1.24%) today, significantly underperforming the S&P 500 (0.77%). Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (NWS as at Jul 31, 2020):
Friday's trading range has been $0.36 (2.78%), that's above the last trading month's daily average range of $0.27. Things look different on the weekly timeframe, where the market's trading range of the last week has been 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 12.61 and 12.97 where it has been caught now for the whole last trading week.
In a volatile session, prices traded above the previous day's high as well as below the prior day's low, forming a bearish Outside Bar. Additionally, two candlestick patterns are matching today's price action, the Black Candle and the Dark Cloud Cover which are both known as bearish patterns. The last time a Dark Cloud Cover showed up on May 5, 2015, NWS lost -6.34% on the following trading day.
After trading down to 12.61 earlier during the day, the share bounced off the key technical support level at 12.63 (S1). The failure to close below the support could increase that levels importance as support going forward. News ran into sellers again today around 12.97 for the third trading day in a row after having found sellers at 12.96 in the previous session and at 12.97 two days ago.
While the market is currently in a short-term downtrend, this might just be a correction, as both the medium and long-term trends are still bullish.
Buying could speed up should prices move above the nearby swing high at 12.97 where further buy stops might get activated.
Among the eight 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. Although it is usually interpreted as bearish, it has actually shown to be bullish for News. Out of 93 times, NWS closed higher 54.84% of the time on the next trading day after the market condition occurred.