NWS.AX slips to lowest close since September 20th
News Corp Class B Voting Common Stock-Cdi (NWS.AX) Technical Analysis Report for Dec 07, 2018 | by Techniquant Editorial Team
NWS.AX finished the week -3.62% lower at 17.83 after losing $0.45 (-2.46%) today on low volume, notably underperforming the ASX 200 (0.42%). Today's close at 17.83 marks the lowest recorded closing price since September 20th. Closing within the prior day's range, prices failed to decisively move beyond the previous day's trading range in a lackluster session.
Daily Candlestick Chart (NWS.AX as at Dec 07, 2018):
Friday's trading range has been $0.19 (1.06%), that's below the last trading month's daily average range of $0.29. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for NWS.AX.
Unable to break through the key technical resistance level at 17.93 (R1), News Corp closed below it after spiking up to 17.95 earlier during the day. The failure to close above the resistance might increase that levels significance going forward. After having been unable to move lower than 17.80 in the prior session, the market found buyers again around the same price level today at 17.76. The last time this happened on Tuesday, NWS.AX actually lost -2.44% on the following trading day.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Selling could speed up should prices move below the nearby swing low at 17.69 where further sell stops might get activated.
Among the three market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Close to Swing Low" stand out. While it is usually interpreted as neutral, it has actually shown to be bullish for News Corp. Out of 382 times, NWS.AX closed higher 53.14% 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 51.05% with an average market move of 0.21%.