NWSA pushes through Monday's high
News Corporation (NWSA) Technical Analysis Report for Jun 30, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, NWSA ended the month -3.18% lower at 11.86 after gaining $0.21 (1.8%) today, slightly outperforming the S&P 500 (1.54%). Closing above Monday's high at 11.71, the share confirmed its breakout through the prior session high after trading up to $0.19 above it intraday.
Daily Candlestick Chart (NWSA as at Jun 30, 2020):
Tuesday's trading range has been $0.30 (2.57%), that's far below the last trading month's daily average range of $0.45. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for NWSA.
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 Bearish Hikkake Pattern. The last time a Bearish Hikkake Pattern showed up on May 22nd, NWSA actually gained 3.13% on the following trading day.
News shows weakness in the short-term (in accordance with its long-term downtrend) with only the medium-term trend still being bullish.
Buying might speed up should prices move above the nearby swing high at 12.21 where further buy stops could get triggered.
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. Though it is usually interpreted as bullish, it has actually shown to be bearish for News. Out of 283 times, NWSA closed lower 53.71% 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 59.36% with an average market move of -0.72%.