NYT finds buyers again around 41.79
New York Times Company (NYT) Technical Analysis Report for Jul 02, 2020 | by Techniquant Editorial Team
NYT finished Thursday at 41.81 losing $0.81 (-1.9%) on low volume, notably underperforming the S&P 500 (0.45%) ahead of tomorrow's Independence Day OBS market holiday. The bears were in full control today, moving the market lower throughout the whole session. Closing below Wednesday's low at 41.87, the market confirmed its breakout through the previous session low after trading up to $0.08 below it intraday.
Daily Candlestick Chart (NYT as at Jul 02, 2020):
Thursday's trading range has been $1.36 (3.16%), that's above the last trading month's daily average range of $1.17. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently lower than usual for NYT.
In a volatile session, prices traded above the prior day's high as well as below the previous day's low, forming a bearish Outside Bar. Even with a strong opening the stock closed below the prior day's open and close, forming a bearish Engulfing Candle. Additionally, one bearish candlestick pattern matches today's price action, the Black Candle.
Prices are trading close to the key technical support level at 41.42 (S1). After having been unable to move lower than 41.87 in the previous session, the share found buyers again around the same price level today at 41.79. The last time this happened on June 25th, NYT actually lost -1.49% on the following trading day.
While New York is currently in a short-term downtrend, this could just be a correction, as both the medium and long-term trends are still bullish.
Selling might accelerate should prices move below the close-by swing low at 41.40 where further sell stops could get triggered.
Among the nine market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bearish Outside Bar" stand out. Although it is usually interpreted as bearish, it has actually shown to be bullish for New York. Out of 106 times, NYT closed higher 56.60% 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 10 trading days, showing a win rate of 56.60% with an average market move of 0.74%.