VIAC closes lower for the 2nd day in a row
ViacomCBS Inc. (VIAC) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, VIAC finished Thursday at 13.99 losing $0.75 (-5.09%) on high volume, notably underperforming the S&P 500 (6.24%). Closing below Wednesday's low at 14.18, the market confirmed its breakout through the previous session low after trading up to $0.91 below it intraday.
Daily Candlestick Chart (VIAC as at Mar 26, 2020):
Thursday's trading range has been $1.58 (10.64%), that's slightly below the last trading month's daily average range of $1.76. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently lower than usual for VIAC.
One bearish candlestick pattern matches today's price action, the Black Candle. The last time a Black Candle showed up on Monday, VIAC actually gained 30.76% on the following trading day.
After trading down to 13.27 earlier during the day, the share bounced off the key technical support level at 13.31 (S1). The failure to close below the support might increase that levels importance as support going forward.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Among the four market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bounced off Technical Support S1" stand out. Its common bullish interpretation has been confirmed for ViacomCBS. Out of 450 times, VIAC closed higher 56.44% 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 53.33% with an average market move of 0.30%.