OUT finds buyers again around 24.93
OUTFRONT Media Inc. (OUT) Technical Analysis Report for Nov 08, 2019 | by Techniquant Editorial Team
OUT ended the week -6.12% lower at 25.02 after losing $0.13 (-0.52%) today, underperforming the S&P 500 (0.26%). Trading $0.33 higher after the open, the stock was unable to hold its gains as the bears took control ending the day below its opening price. Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (OUT as at Nov 08, 2019):
Friday's trading range has been $0.45 (1.8%), that's slightly below the last trading month's daily average range of $0.54. Things look different on the weekly timeframe, where the market's trading range of the last week has been way above the market's average weekly trading range. The longer-term, monthly volatility is currently significantly higher than usual for OUT. Prices continued to consolidate within a tight trading range between 24.75 and 25.45 where it has been caught now for the last three trading days.
During the whole day, prices traded within the previous day's range, unable to trade above the prior day's high or below the previous day's low forming an Inside Bar. Additionally, one bearish candlestick pattern matches today's price action, the Bearish Spinning Top. The last time a Bearish Spinning Top showed up on Monday, OUT lost -5.19% on the following trading day.
Prices are trading close to the key technical resistance level at 25.48 (R1). After having been unable to move lower than 24.89 in the prior session, OUTFRONT Media found buyers again around the same price level today at 24.93.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Buying might speed up should prices move above the nearby swing high at 25.45 where further buy stops could get triggered. Selling might accelerate should prices move below the close-by swing low at 24.41 where further sell stops could get activated.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Close to Swing Low" stand out. Although it is usually interpreted as neutral, it has actually shown to be bearish for OUTFRONT Media. Out of 435 times, OUT closed lower 51.49% 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 55.86% with an average market move of -0.52%.