L pushes through Wednesday's high
Loews Corporation (L) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team
L ended Thursday at 35.41 gaining $2.12 (6.37%) on low volume, slightly outperforming the S&P 500 (6.24%). Closing above Wednesday's high at 35.17, the market confirmed its breakout through the prior session high after trading up to $0.53 above it intraday.
Daily Candlestick Chart (L as at Mar 26, 2020):
Thursday's trading range has been $2.98 (8.86%), that's slightly below the last trading month's daily average range of $3.43. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently higher than usual for L.
One bullish candlestick pattern matches today's price action, the White Candle.
Prices are trading close to the key technical resistance level at 37.96 (R1). After having been unable to move lower than 32.24 in the previous session, Loews found buyers again around the same price level today at 32.72. The last time this happened on March 19th, L actually lost -16.22% on the following trading day.
While the stock is experiencing a short-term uptrend, this could just be a correction, as both the medium and long-term trends are still bearish.
Buying might accelerate should prices move above the close-by swing high at 38.23 where further buy stops could get activated.
Among the seven 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. Though it is usually interpreted as bearish, it has actually shown to be bullish for Loews. Out of 570 times, L closed higher 52.28% 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 55.44% with an average market move of 0.18%.