NWSA misses to close above 100-day moving average
News Corporation (NWSA) Technical Analysis Report for May 22, 2020 | by Techniquant Editorial Team
NWSA ended the week 5.98% higher at 11.52 after gaining $0.14 (1.23%) today on low volume, outperforming the S&P 500 (0.24%) ahead of tomorrow's Memorial Day market holiday. Today's close at 11.52 marks the highest recorded closing price since March 4th. Trading up to $0.12 lower after the open, the stock managed to reverse during the session as bulls took control ending the day above its opening price. Closing above Thursday's high at 11.47, News confirmed its breakout through the prior session high after trading up to $0.11 above it intraday.
Daily Candlestick Chart (NWSA as at May 22, 2020):
Friday's trading range has been $0.25 (2.18%), that's far below the last trading month's daily average range of $0.45. 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 11.06 and 11.58 where it has been caught now for the whole last trading week.
One bearish candlestick pattern matches today's price action, the Bearish Hikkake Pattern. The last time a Bearish Hikkake Pattern showed up on April 14th, NWSA lost -5.10% on the following trading day.
After spiking up to 11.58 during the day, the share found resistance at the 100-day moving average at 11.54.
Though still in a long-term downtrend, the short and medium-term trends both turned bullish already.
Selling might accelerate should prices move below the close-by swing low at 11.06 where further sell stops could get activated.
Among the seven 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 279 times, NWSA closed lower 53.41% 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 59.50% with an average market move of -0.87%.