L closes higher for the 2nd day in a row
Loews Corporation (L) Technical Analysis Report for Jun 30, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, L finished the month 3.16% higher at 34.29 after gaining $0.60 (1.78%) today, slightly outperforming the S&P 500 (1.54%). Closing above Monday's high at 33.82, the market confirmed its breakout through the previous session high after trading up to $0.73 above it intraday.
Daily Candlestick Chart (L as at Jun 30, 2020):
Tuesday's trading range has been $1.21 (3.61%), that's slightly below the last trading month's daily average range of $1.41. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for L.
One bullish candlestick pattern matches today's price action, the White Candle. The last time a White Candle showed up on June 25th, L actually lost -3.04% on the following trading day.
Prices are trading close to the key technical resistance level at 34.61 (R1).
While Loews is experiencing a short-term uptrend, this could just be a correction, as both the medium and long-term trends are still bearish.
Among the three market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "2 Consecutive Higher Closes" stand out. Its common bullish interpretation has been confirmed for Loews. Out of 321 times, L closed higher 50.47% 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 six trading days, showing a win rate of 56.39% with an average market move of 0.06%.