VIAC runs into sellers again around 26.17
ViacomCBS Inc. (VIAC) Technical Analysis Report for Jul 31, 2020 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, VIAC ended the month 11.79% higher at 26.07 after gaining $0.26 (1.01%) today, slightly outperforming the S&P 500 (0.77%). Today's close at 26.07 marks the highest recorded closing price since June 8th. Trading up to $0.34 lower after the open, the market managed to reverse during the session as bulls took control ending the day above its opening price. Closing above Thursday's high at 26.05, ViacomCBS confirmed its breakout through the previous session high after trading up to $0.12 above it intraday.
Daily Candlestick Chart (VIAC as at Jul 31, 2020):
Friday's trading range has been $0.83 (3.23%), that's below the last trading month's daily average range of $0.98. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for VIAC.
Prices are trading close to the key technical resistance level at 26.58 (R1). After having been unable to move above 26.05 in the prior session, the share ran into sellers again around the same price level today, failing to move higher than 26.17. The last time this happened on Tuesday, VIAC actually gained 3.14% on the following trading day.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "3 Consecutive Higher Closes" stand out. Its common bullish interpretation has been confirmed for ViacomCBS. Out of 164 times, VIAC closed higher 53.05% 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 57.32% with an average market move of 0.73%.