NWS.AX breaks below 20-day moving average
News Corp Class B Voting Common Stock-Cdi (NWS.AX) Technical Analysis Report for Oct 12, 2018 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, NWS.AX finished the week -3.3% lower at 18.48 after losing $0.04 (-0.22%) today on high volume, slightly underperforming the market (ASX 200, 0.2%). Today's close at 18.48 marks the lowest recorded closing price since September 26th. Closing within the previous day's range, prices missed to decisively move beyond the prior day's trading range. Ending the day with an indecisive close, neither buyers nor sellers were able to gain control during the session.
Daily Candlestick Chart (NWS.AX as at Oct 12, 2018):
Friday's trading range was $0.20 (1.08%), that's slightly below last trading month's daily average range of $0.24. Things look different on a weekly scale, where volatility is above the markets average with the monthly volatility being slightly above average.
One bearish candlestick pattern matches today's price action, the Bearish Spinning Top.
Prices are trading close to the key resistance level at 18.62. After having been unable to move lower than 18.40 in the previous session, News Corp found buyers again around the same price level today at 18.35. After spiking up to 18.55 during the day, the market found resistance at the 20-day moving average at 18.51.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term. The share broke below the 20-day moving average at 18.51 today for the first time since August 13th. The last time this happened on August 13th, NWS.AX gained 2.89% on the following trading day.
With prices trading close to this year's low at 17.75, downside momentum might accelerate should the stock break out to new lows for the year.
Among the six market conditions that our engine recognized today, the statistics for the Support/Resistance based condition "Bearish Bounce off SMA 20" stands out. Though it is usually interpreted being bearish, it has actually shown to be bullish so far in the past for News Corp. Out of 47 times during the last ten years, NWS.AX closed higher 55.32% of the time on the next trading day. The optimal exit for swing trading this condition on the long side has been after two trading days, showing a win rate of 53.19% with an average market move of 0.11%.