NWS unable to break through key resistance level
News Corp. Class B (NWS) Technical Analysis Report for May 17, 2018
NWS finished Thursday at 16.20 losing $0.05 (-0.31%) on high volume. Trading $0.10 higher after the open, News Corp. was unable to hold its gains as the bears took control ending the day below its opening price. Closing within the prior day's range, prices failed to decisively move beyond the previous day's trading range. Ending the day with an indecisive close, neither buyers nor sellers were able to gain control during the session.
Thursday's trading range was $0.25 (1.54%), that's slightly below last trading month's daily average range of $0.35. Things look different on a weekly scale, where volatility is way above the markets average with the monthly volatility being above average. Prices continued to consolidate within a tight trading range between 15.95 and 16.40 which it has been in now for the last three days.
In spite of a strong opening the market closed below the prior day's open and close, forming a bearish Engulfing Candle. After moving higher in the previous session, the share closed lower but above the prior day's open today, forming a bearish Harami Candle.
Prices are trading close to a key support level at 16.08. Unable to break through the key technical resistance level at 16.30, the stock closed below it after spiking as high as 16.35 during the day. The failure to close above the resistance could increase that levels importance as resistance going forward. NWS was sold again around 16.35 after having seen highs at 16.40, 16.33 and 16.35 in the last three trading sessions. Obviously there is something going on at that level. After spiking up to 16.35 during the day, News Corp. found resistance at the 50-day moving average at 16.28.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Buying might accelerate should prices move above the close-by swing high at 16.40 where further buy stops could get activated.
While classical technical analysis indicates a neutral sentiment for the next trading day, our quantitative statistics show a different picture being slightly bullish.