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February 22, 2023
News Corp traders are preparing for a tough opening bell in a hour time as pre-market trade emphasizes yesterday's bearish bias. An influx of sellers pushed the media giant to session lows around $18.24 while establishing a $18.24 to $18.88 session range yesterday.
United States FOMC Meeting Minutes is next today at 19:00 UTC.
While price action maintains a negative bias, United States Existing Home Sales (Jan) released yesterday at 15:00 UTC with a figure of 4 million, while the previous figure was 4 million. United States 2-Year Note Auction released yesterday at 18:00 UTC with a figure of 4.673, while the previous figure was 4.139. United States Existing Home Sales released earlier showed a marked improvement to -0.7% from the preceding data of -2.2%, but fell short of the 2% figure forecast by a consensus of market analysts.
Technical analysis shows that News Corp could begin to recover as it approaches significant support, now 22 cents away from $18.04. Dipping below could be an indication that further losses are ahead. Trend-following investors would be interested to note that the Commodity Channel Index (CCI) indicator is below -100, meaning the market price is unusually low and below its rolling moving average. Technical analysis indicates that a new, strong downtrend could be forthcoming with short positions favored. According to asset volatility analysis, Bollinger Bands® shows an indication of recovery: the lower band is at $17.81, a low enough level to, generally, suggest that News Corp is trading below its fair value.
All in all, the technical analysis suggests News Corp has no clear-cut direction.
News Corp was not the only decliner in the communication services sector; Verizon lost 2.54% yesterday and closed at $39.2. Alphabet went down to $92.05, losing 2.69% after it closed at $94.59 yesterday. Comcast lost 3.27% yesterday and closed at $37.84.
With markets struggling for positive sentiment, upcoming macro data could potentially attract buyers in the market as tomorrow at 16:00 UTC data for United States Crude Oil Inventories will be released, with an expected decline to 1.17 million from the preceding figure of 16.28 million. United States Initial Jobless Claims projected to come out at 200,000 — worse than previous data of 194,000; data will be released tomorrow at 13:30 UTC.
Furthermore, United States GDP is expected tomorrow at 13:30 UTC.
4 months ago, the mass media and publishing company fell to a low of $14.95 but has since recovered 27.09%.
