VIAB closes within previous day's range
Viacom Inc. (VIAB) Technical Analysis Report for Nov 09, 2018 | by Techniquant Editorial Team
VIAB finished the week 1.36% higher at 32.10 after gaining $0.07 (0.22%) today, significantly outperforming the S&P 500 (-0.92%). Closing within the previous day's range, prices missed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (VIAB as at Nov 09, 2018):
Friday's trading range has been $1.14 (3.57%), that's slightly below the last trading month's daily average range of $1.19. Weekly volatility is also lower, being way below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for VIAB.
During the whole day, prices traded within the previous day's range, unable to trade above the prior day's high or below the previous day's low forming an Inside Bar. Additionally, one bullish candlestick pattern matches today's price action, the Inverted Hammer. The last time a Inverted Hammer showed up on August 21, 2015, VIAB actually lost -4.31% on the following trading day.
Buyers managed to take out the key technical resistance level at 32.03 (now S1), which is likely to act as support going forward. Prices are trading close to the key technical resistance level at 33.02 (R1). After having been unable to move lower than 31.83 in the prior session, the market found buyers again around the same price level today at 31.86.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Buying could accelerate should prices move above the close-by swing high at 33.02 where further buy stops might get triggered. Selling could speed up should prices move below the nearby swing low at 31.05 where further sell stops might get activated.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Inverted Hammer" stand out. Its common bullish interpretation has been confirmed for Viacom. Out of 6 times, VIAB closed higher 66.67% 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 50.00% with an average market move of 1.04%.