QRTEA closes lower for the 2nd day in a row
Qurate Retail Inc. Series A Common Stock (QRTEA) Technical Analysis Report for Jul 31, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, QRTEA ended the month 14.84% higher at 10.91 after losing $0.12 (-1.09%) today, strongly underperforming the Nasdaq 100 (1.78%). Trading $0.27 higher after the open, Qurate Retail was unable to hold its gains as the bears took control ending the day below its opening price. Closing within the prior day's range, prices failed to decisively move beyond the previous day's trading range.
Daily Candlestick Chart (QRTEA as at Jul 31, 2020):
Friday's trading range has been $0.40 (3.66%), that's slightly 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 way above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for QRTEA.
During the whole day, prices traded within the prior day's range, unable to trade above the previous day's high or below the prior day's low forming an Inside Bar. Additionally, three candlestick patterns are matching today's price action, the Gravestone Doji and the Northern Doji which are both known as bearish patterns and one neutral pattern, the Doji. The last time a Northern Doji showed up on June 3rd, QRTEA actually gained 5.22% on the following trading day.
After having been unable to move lower than 10.77 in the previous session, the market found buyers again around the same price level today at 10.80.
Crossing below the upper Bollinger Band, prices have lost at least some of their upward momentum in the short-term and might now be heading back down towards the mean of the Bollinger Bands at 9.81.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Gravestone Doji" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for Qurate Retail. Out of 48 times, QRTEA closed higher 58.33% 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 seven trading days, showing a win rate of 54.17% with an average market move of 0.51%.