NWSA stuck within tight trading range
News Corporation (NWSA) Technical Analysis Report for Jan 11, 2019 | by Techniquant Editorial Team
NWSA ended the week 3.99% higher at 12.24 after gaining $0.06 (0.49%) today, slightly outperforming the S&P 500 (-0.01%). Today's close at 12.24 marks the highest recorded closing price since December 14, 2018. The bulls were in full control today, moving the market higher throughout the whole session. Closing above Thursday's high at 12.23, the market confirmed its breakout through the prior session high after trading up to $0.02 above it intraday.
Daily Candlestick Chart (NWSA as at Jan 11, 2019):
Friday's trading range has been $0.19 (1.57%), that's far below the last trading month's daily average range of $0.37. Weekly volatility is also lower, being way below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for NWSA. Prices continued to consolidate within a tight trading range between 12.06 and 12.32 where it has been caught now for the last three trading days.
In a volatile session, prices traded above the previous day's high as well as below the prior day's low, forming a bullish Outside Bar. Additionally, three candlestick patterns are matching today's price action, the Bullish Short Candle and the White Candle which are both known as bullish patterns and one bearish pattern, the Last Engulfing Top Pattern.
Prices are trading close to the key technical resistance level at 12.32 (R1). News found buyers again today around 12.06 for the third trading day in a row after having found demand at 12.07 in the previous session and at 12.06 two days ago. The last time this happened on January 3rd, NWSA gained 4.34% on the following trading day.
Although the stock is experiencing a short-term uptrend, this might just be a correction, as both the medium and long-term trends are still bearish.
Buying could accelerate should prices move above the nearby swing high at 12.32 where further buy stops might get triggered.
Among the 13 market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Closed above last periods high" stand out. Though it is usually interpreted as bullish, it has actually shown to be bearish for News. Out of 235 times, NWSA closed lower 56.17% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the short side has been after 10 trading days, showing a win rate of 59.57% with an average market move of -0.73%.