NWS.AX rises to highest close since August 10th
News Corp Class B Voting Common Stock-Cdi (NWS.AX) Technical Analysis Report for Nov 09, 2018 | by Techniquant Editorial Team
Moving higher for the 4th day in a row, NWS.AX ended the week 7.58% higher at 19.86 after surging $0.57 (2.95%) today on low volume, strongly outperforming the ASX 200 (-0.11%). Today's close at 19.86 marks the highest recorded closing price since August 10th. The bulls were in full control today, moving the market higher throughout the whole session. Closing above Thursday's high at 19.33, the market confirmed its breakout through the previous session high after trading up to $0.53 above it intraday.
Daily Candlestick Chart (NWS.AX as at Nov 09, 2018):
Friday's trading range has been $0.56 (2.9%), that's far above the last trading month's daily average range of $0.29. Weekly volatility is also higher, being way above the market's average weekly trading range. The longer-term, monthly volatility is currently higher than usual for NWS.AX.
Three candlestick patterns are matching today's price action, the Bullish Closing Marubozu, the Bullish Marubozu and the White Candle which are known as bullish patterns. The last time a Bullish Closing Marubozu showed up on October 31st, NWS.AX gained 1.03% on the following trading day.
News Corp managed to close above the 100-day moving average at 19.51 for the first time since July 12th. Prices are trading close to the key technical resistance level at 19.91 (R1).
With another close above the upper Bollinger Band, prices are confirming their strong upward momentum in the short-term. A drop back into the Bollinger Band on the next trading day while might signal a potential change in momentum that could lead to a correction back down towards the center of the Bollinger Bands at 18.66.
Although still in a long-term downtrend, the short and medium-term trends both turned bullish already.
Among the 13 market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bullish Marubozu" stand out. Its common bullish interpretation has been confirmed for News Corp. Out of 6 times, NWS.AX closed higher 83.33% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the long side has been after 10 trading days, showing a win rate of 50.00% with an average market move of 1.21%.