NWSA runs into sellers around 12.92 for the third day in a row
News Corporation (NWSA) Technical Analysis Report for Jul 31, 2020 | by Techniquant Editorial Team
NWSA finished the month 7.25% higher at 12.72 after losing $0.18 (-1.4%) today, notably underperforming the S&P 500 (0.77%). Closing within the previous day's range, prices missed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (NWSA as at Jul 31, 2020):
Friday's trading range has been $0.32 (2.49%), that's slightly above the last trading month's daily average range of $0.31. Things look different on the weekly timeframe, where the market's trading range of the last week has been below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for NWSA.
Unable to break through the key technical resistance level at 12.91 (R1), the share closed below it after spiking up to 12.92 earlier during the day. The failure to close above the resistance might increase that levels importance going forward. The stock ran into sellers again today around 12.92 for the third trading day in a row after having found sellers at 12.97 in the previous session and at 12.95 two days ago. The last time this happened on April 17th, NWSA lost -1.46% on the following trading day.
Although the market is currently in a short-term downtrend, this could just be a correction, as both the medium and long-term trends are still bullish.
Buying might accelerate should prices move above the close-by swing high at 12.97 where further buy stops could get activated. Selling might speed up should prices move below the nearby swing low at 12.57 where further sell stops could get triggered.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Close to Swing High" stand out. Though it is usually interpreted as neutral, it has actually shown to be bullish for News. Out of 540 times, NWSA closed higher 51.48% 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 five trading days, showing a win rate of 53.15% with an average market move of 0.17%.