NWSA pushes through Thursday's high
News Corporation (NWSA) Technical Analysis Report for Feb 14, 2020 | by Techniquant Editorial Team
NWSA finished the week 2.89% higher at 14.60 after gaining $0.20 (1.39%) today, strongly outperforming the S&P 500 (0.18%) ahead of tomorrow's Presidents' Day market holiday. Today's close at 14.60 marks the highest recorded closing price since January 17th. Closing above Thursday's high at 14.47, News confirmed its breakout through the previous session high after trading up to $0.15 above it intraday.
Daily Candlestick Chart (NWSA as at Feb 14, 2020):
Friday's trading range has been $0.29 (2.01%), that's slightly below the last trading month's daily average range of $0.35. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for NWSA.
Two candlestick patterns are matching today's price action, the White Candle which is known as bullish pattern and one bearish pattern, the Bearish Hikkake Pattern.
Buyers managed to take out the key technical resistance level at 14.45 (now S1), which is likely to act as support going forward. After having been unable to move lower than 14.29 in the prior session, the market found buyers again around the same price level today at 14.33. The last time this happened on Monday, NWSA gained 2.69% on the following trading day.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
With prices trading close to this year's high at 15.07, upside momentum might accelerate should the stock be able to break out to new highs for the year.
Among the eight 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. Although it is usually interpreted as bullish, it has actually shown to be bearish for News. Out of 267 times, NWSA closed lower 53.18% 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 59.93% with an average market move of -0.60%.