QRTEA rises to highest close since December 2, 2019
Qurate Retail Inc. Series A Common Stock (QRTEA) Technical Analysis Report for Feb 14, 2020 | by Techniquant Editorial Team
Moving higher for the 5th day in a row, QRTEA ended the week 10.99% higher at 9.29 after edging higher $0.07 (0.76%) today, slightly outperforming the Nasdaq 100 (0.29%) ahead of tomorrow's Presidents' Day market holiday. Today's close at 9.29 marks the highest recorded closing price since December 2, 2019. Trading up to $0.23 lower after the open, Qurate Retail managed to reverse during the session as bulls took control ending the day above its opening price. Closing above Thursday's high at 9.27, the share confirmed its breakout through the prior session high after trading up to $0.05 above it intraday.
Daily Candlestick Chart (QRTEA as at Feb 14, 2020):
Friday's trading range has been $0.32 (3.47%), that's far below the last trading month's daily average range of $0.45. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for QRTEA.
Two candlestick patterns are matching today's price action, the Bearish Hikkake Pattern and the Hanging Man which are both known as bearish patterns.
Prices are trading close to the key technical support level at 8.99 (S1). After having been unable to move lower than 8.95 in the previous session, the stock found buyers again around the same price level today at 9.00. The last time this happened on February 5th, QRTEA actually lost -3.65% on the following trading day.
While still in a long-term downtrend, the short and medium-term trends both turned bullish already.
Buying might speed up should prices move above the nearby swing high at 9.36 where further buy stops could get activated. Trading close to December's high at 9.66 we might see further upside momentum if potential buy stops at the level get triggered.
Among the 10 market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "5 Consecutive Higher Closes" stand out. Although it is usually interpreted as bullish, it has actually shown to be bearish for Qurate Retail. Out of 48 times, QRTEA closed lower 54.17% 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 three trading days, showing a win rate of 52.08% with an average market move of -0.10%.