L closes lower for the 2nd day in a row
Loews Corporation (L) Technical Analysis Report for Jul 31, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, L finished the month 6.18% higher at 36.41 after edging lower $0.12 (-0.33%) today, strongly underperforming the S&P 500 (0.77%). Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (L as at Jul 31, 2020):
Friday's trading range has been $0.83 (2.27%), that's slightly below the last trading month's daily average range of $0.96. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for L.
Prices are trading close to the key technical resistance level at 36.83 (R1). After having been unable to move lower than 35.80 in the previous session, Loews found buyers again around the same price level today at 35.75. The last time this happened on Tuesday, L gained 2.72% on the following trading day.
Though still in a long-term downtrend, the short and medium-term trends both turned bullish already.
Buying could speed up should prices move above the close-by swing high at 37.46 where further buy stops might get triggered.
Among the three market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "2 Consecutive Lower Closes" stand out. Although it is usually interpreted as bearish, it has actually shown to be bullish for Loews. Out of 304 times, L closed higher 56.91% 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 56.58% with an average market move of 0.39%.