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Possible Bullish Inside Day Candle Pattern Detected for Discovery Communications (NASDAQ:DISCA)

By Nick Russo

SmarTrend's candlestick scanner has spotted a possible bullish inside day candle pattern in Discovery Communications (NASDAQ:DISCA) based on the price action in the company's shares. Today's price range of $23.89 and $24.05 is within yesterday's high and low of the day. This trading action often signifies indecision by bulls and bears to drive prices higher or lower and often implies a possible change in trend. Traders and investors interested in shares of Discovery Communications may want to consider an appropriate entry level in the event a reversal to the upside transpires. It is important to look for confirmation.

Over the past year, Discovery Communications has traded in a range of $23.67 to $34.94 and is now at $23.97, 1% above that low. In the last five trading sessions, the 50-day moving average (MA) has climbed 0.5% while the 200-day MA has slid 0.4%.

Discovery Communications Inc. provides non-fiction entertainment. The Company operates a wide range of educational television channels as well as offers consumer and educational products and services, and a diversified portfolio of digital media services.

Potential upside of 33.1% exists for Discovery Communications, based on a current level of $23.97 and analysts' average consensus price target of $31.91. The stock should run into initial resistance at its 50-day moving average (MA) of $27.94 and subsequent resistance at its 200-day MA of $28.07.

SmarTrend recommended that its subscribers protect gains by selling shares of Discovery Communications on May 4th, 2016 by issuing a Downtrend alert when the shares were trading at $27.05. Since that call, shares of Discovery Communications have fallen 12.3%. We are now looking for when a new Uptrend will commence and will alert SmarTrend subscribers in real time.

Keywords: bullish inside day candle Discovery Communications

Ticker(s): DISCA