L closes above its opening price after recovering from early selling pressure
Loews Corporation (L) Technical Analysis Report for Feb 14, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, L ended the week 1.77% higher at 54.19 after gaining $0.13 (0.24%) today on low volume, slightly outperforming the S&P 500 (0.18%) ahead of tomorrow's Presidents' Day market holiday. Trading up to $0.36 lower after the open, the share managed to reverse during the session as bulls took control ending the day above its opening price. Closing above Thursday's high at 54.13, Loews confirmed its breakout through the prior session high after trading up to $0.10 above it intraday.
Daily Candlestick Chart (L as at Feb 14, 2020):
Friday's trading range has been $0.58 (1.07%), that's below the last trading month's daily average range of $0.89. Things look different on the weekly timeframe, where the market's trading range of the last week has been way above the market's average weekly trading range. The longer-term, monthly volatility is currently significantly higher than usual for L. Prices continued to consolidate within a tight trading range between 53.59 and 54.95 where it has been caught now for the last three trading days.
Prices are trading close to the key technical support level at 53.59 (S1). After having been unable to move lower than 53.59 in the previous session, the stock found buyers again around the same price level today at 53.65. The last time this happened on Tuesday, L actually lost -1.44% on the following trading day.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Selling could speed up should prices move below the nearby swing low at 53.59 where further sell stops might get activated.
Among the eight market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "High close to prior High" stand out. Although it is usually interpreted as bearish, it has actually shown to be bullish for Loews. Out of 575 times, L closed higher 52.52% 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 56.17% with an average market move of 0.27%.