VIAC closes within previous day's range
ViacomCBS Inc. (VIAC) Technical Analysis Report for Feb 14, 2020 | by Techniquant Editorial Team
VIAC ended the week 0.78% higher at 34.98 after flat today on low volume, slightly underperforming the S&P 500 (0.18%) ahead of tomorrow's Presidents' Day market holiday. Closing within the prior day's range, prices missed to decisively move beyond the previous day's trading range.
Daily Candlestick Chart (VIAC as at Feb 14, 2020):
Friday's trading range has been $0.91 (2.58%), that's slightly below the last trading month's daily average range of $0.92. Weekly volatility is also lower, being way below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for VIAC.
Notwithstanding a strong opening the market closed below the prior day's open and close, forming a bearish Engulfing Candle. The last time this candlestick pattern showed up on January 8th, VIAC lost -2.53% on the following trading day.
Prices are trading close to the key technical resistance level at 35.02 (R1).
While 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 accelerate should prices move above the nearby swing high at 35.58 where further buy stops might get triggered.
Among the two market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Close to Swing High" stand out. Although it is usually interpreted as neutral, it has actually shown to be bullish for ViacomCBS. Out of 719 times, VIAC closed higher 51.32% 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 57.44% with an average market move of 0.43%.