QRTEA pushes through key technical resistance level
Qurate Retail Inc. Series A Common Stock (QRTEA) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team
Moving higher for the 4th day in a row, QRTEA ended Thursday at 5.90 gaining $0.41 (7.47%), strongly outperforming the Nasdaq 100 (5.72%). Today's close at 5.90 marks the highest recorded closing price since March 3rd. Trading up to $0.40 lower after the open, the market managed to reverse during the session as bulls took control ending the day above its opening price. Closing above Wednesday's high at 5.74, Qurate Retail confirmed its breakout through the previous session high after trading up to $0.19 above it intraday.
Daily Candlestick Chart (QRTEA as at Mar 26, 2020):
Thursday's trading range has been $0.82 (14.88%), that's slightly above the last trading month's daily average range of $0.76. 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 significantly lower than usual for QRTEA.
Buyers managed to take out the key technical resistance level at 5.65 (now S1), which is likely to act as support going forward. The last time this happened on Tuesday, QRTEA gained 7.65% on the following trading day.
Although the share is experiencing a short-term uptrend, this could just be a correction, as both the medium and long-term trends are still bearish.
As prices are trading close to March's high at 6.79, upside momentum might speed up should the stock mark new highs for the month.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "4 Consecutive Higher Closes" stand out. Its common bullish interpretation has been confirmed for Qurate Retail. Out of 81 times, QRTEA closed higher 60.49% 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 eight trading days, showing a win rate of 54.32% with an average market move of -0.01%.