NWSA dominated by bears dragging the market lower throughout the day
News Corporation (NWSA) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team
NWSA finished Wednesday at 15.11 losing $0.21 (-1.37%) on high volume, underperforming the S&P 500 (-0.46%). The bears were in full control today, moving the market lower throughout the whole session. Closing below Tuesday's low at 15.19, the market confirmed its breakout through the prior session low after trading up to $0.11 below it intraday.
Daily Candlestick Chart (NWSA as at Sep 16, 2020):
Wednesday's trading range has been $0.32 (2.08%), that's slightly below the last trading month's daily average range of $0.33. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently significantly lower than usual for NWSA.
In a volatile session, prices traded above the previous day's high as well as below the prior day's low, forming a bearish Outside Bar. The last time this happened on July 9th, NWSA actually gained 1.96% on the following trading day. Regardless of a strong opening News closed below the previous day's open and close, forming a bearish Engulfing Candle. Additionally, one bearish candlestick pattern matches today's price action, the Black Candle.
The stock ran into sellers again today around 15.40 for the third trading day in a row after having found sellers at 15.36 in the prior session and at 15.37 two days ago.
While the share is currently in a short-term downtrend, this could just be a correction, as both the medium and long-term trends are still bullish.
With prices trading close to this year's high at 15.46, upside momentum might accelerate should NWSA be able to break out to new highs for the year. As prices are trading close to September's high at 15.45, upside momentum could speed up should the market mark new highs for the month.
Among the nine market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Decisive Down Move" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for News. Out of 202 times, NWSA closed higher 52.97% of the time on the next trading day after the market condition occurred.