USM breaks back above 20-day moving average
United States Cellular Corporation (USM) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team
USM ended Thursday at 29.57 gaining $0.85 (2.96%), strongly underperforming the S&P 500 (6.24%). Closing within the previous day's range, prices missed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (USM as at Mar 26, 2020):
Thursday's trading range has been $2.12 (7.34%), that's slightly below the last trading month's daily average range of $2.56. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for USM. Prices continued to consolidate within a tight trading range between 28.42 and 31.25 where it has been caught now for the last three trading days.
The market managed to close back above the 20-day moving average at 29.39. Prices are trading close to the key technical resistance level at 31.25 (R1). After having been unable to move lower than 28.54 in the previous session, the share found buyers again around the same price level today at 28.42. The last time this happened on March 16th, USM gained 16.01% on the following trading day.
Though the stock is experiencing a short-term uptrend, this might just be a correction, as both the medium and long-term trends are still bearish.
Buying could speed up should prices move above the nearby swing high at 31.25 where further buy stops might get activated.
Among the three market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Close to Swing High" stand out. While it is usually interpreted as neutral, it has actually shown to be bullish for United States. Out of 820 times, USM closed higher 50.12% of the time on the next trading day after the market condition occurred.