VIAC closes within previous day's range after lackluster session
ViacomCBS Inc. (VIAC) Technical Analysis Report for May 22, 2020 | by Techniquant Editorial Team
VIAC ended the week 13.24% higher at 19.59 after losing $0.25 (-1.26%) today, notably underperforming the S&P 500 (0.24%) ahead of tomorrow's Memorial Day market holiday. Closing within the prior day's range, prices missed to decisively move beyond the previous day's trading range in a lackluster session.
Daily Candlestick Chart (VIAC as at May 22, 2020):
Friday's trading range has been $0.97 (4.87%), that's below the last trading month's daily average range of $1.17. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for VIAC.
After having been unable to move above 20.19 in the prior session, the share ran into sellers again around the same price level today, missing to move higher than 20.06. The last time this happened on May 15th, VIAC actually gained 10.12% on the following trading day.
Although still in a long-term downtrend, the short and medium-term trends both turned bullish already.
Buying might speed up should prices move above the close-by swing high at 20.68 where further buy stops could get activated.
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. While it is usually interpreted as neutral, it has actually shown to be bullish for ViacomCBS. Out of 720 times, VIAC closed higher 51.53% 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 57.50% with an average market move of 0.36%.