OUT pushes through key technical resistance level
OUTFRONT Media Inc. (OUT) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team
OUT finished Wednesday at 16.90 gaining $0.53 (3.24%) on high volume, strongly outperforming the S&P 500 (-0.46%). Closing within the previous day's range, prices missed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (OUT as at Sep 16, 2020):
Wednesday's trading range has been $0.85 (5.14%), that's above the last trading month's daily average range of $0.69. Weekly volatility is also higher, being slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for OUT.
Buyers managed to take out the key technical resistance level at 16.69 (now S1), which is likely to act as support going forward. The last time this happened on August 28th, OUT actually lost -1.86% on the following trading day.
Although 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.
Buying might speed up should prices move above the nearby swing high at 17.58 where further buy stops could get activated. As prices are trading close to September's high at 17.58, upside momentum might accelerate should the stock mark new highs for the month.
Among the three market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Price broke through Technical Resistance R1" stand out. Though it is usually interpreted as bullish, it has actually shown to be bearish for OUTFRONT Media. Out of 148 times, OUT closed lower 53.38% 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 53.38% with an average market move of -0.77%.