QRTEA dominated by bulls lifting the market higher throughout the day
Qurate Retail Inc. Series A Common Stock (QRTEA) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team
QRTEA ended Wednesday at 6.89 gaining $0.73 (11.85%) on high volume, strongly outperforming the Nasdaq 100 (-1.67%). The bulls were in full control today, moving the market higher throughout the whole session. Closing above Tuesday's high at 6.66, the share confirmed its breakout through the prior session high after trading up to $0.28 above it intraday.
Daily Candlestick Chart (QRTEA as at Sep 16, 2020):
Wednesday's trading range has been $0.81 (13.09%), that's far above the last trading month's daily average range of $0.45. Weekly volatility is also higher, being way above the market's average weekly trading range. The longer-term, monthly volatility is currently notably higher than usual for QRTEA.
One bullish candlestick pattern matches today's price action, the White Candle. The last time a White Candle showed up on Monday, QRTEA actually lost -43.69% on the following trading day.
With another close below the lower Bollinger Band, prices are confirming their strong downward momentum in the short-term. A rally back into the Bollinger Band on the next trading day though might signal a potential change in momentum that could lead to a correction back up towards the center of the Bollinger Bands at 10.14.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the Technical Indicators based market condition "Close below the lower Bollinger Band" stand out. Although it is usually interpreted as bearish, it has actually shown to be bullish for Qurate Retail. Out of 128 times, QRTEA closed higher 58.59% 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 10 trading days, showing a win rate of 68.75% with an average market move of 2.13%.