USM unable to break through key resistance level
United States Cellular Corporation (USM) Technical Analysis Report for Jul 31, 2020 | by Techniquant Editorial Team
USM ended the month -3.89% lower at 29.67 after gaining $0.19 (0.64%) today, slightly underperforming the S&P 500 (0.77%). 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 Jul 31, 2020):
Friday's trading range has been $1.06 (3.57%), that's above the last trading month's daily average range of $0.85. Weekly volatility is also higher, being slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for USM.
Three candlestick patterns are matching today's price action, the Southern Doji and the Takuri Line which are both known as bullish patterns and one neutral pattern, the Doji.
Unable to break through the key technical resistance level at 29.75 (R1), the market closed below it after spiking up to 29.85 earlier during the day. The failure to close above the resistance might increase that levels importance going forward. When prices bounced off a significant resistance level the last time on July 21st, USM lost -3.28% on the following trading day.
Crossing above the lower Bollinger Band, prices have lost at least some of their downward momentum in the short-term and could now be heading back up towards the mean of the Bollinger Bands at 30.84.
While still in a long-term uptrend, the short and medium-term trends both turned bearish already.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Southern Doji" stand out. Its common bullish interpretation has been confirmed for United States. Out of 47 times, USM closed higher 51.06% 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 57.45% with an average market move of 0.71%.