L finds buyers around 35.44 for the third day in a row
Loews Corporation (L) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team
L ended Wednesday at 37.07 surging $1.68 (4.75%) on high volume, significantly outperforming the S&P 500 (-0.46%). This is the biggest single-day gain in over two months. Today's close at 37.07 marks the highest recorded closing price since August 14th. The bulls were in full control today, moving the market higher throughout the whole session. Closing above Tuesday's high at 36.57, the market confirmed its breakout through the previous session high after trading up to $0.93 above it intraday.
Daily Candlestick Chart (L as at Sep 16, 2020):
Wednesday's trading range has been $2.06 (5.78%), that's far above the last trading month's daily average range of $1.09. Weekly volatility is also higher, being slightly above 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 share managed to close back above the 50-day moving average at 36.27 for the first time since September 4th. Loews found buyers again today around 35.44 for the third trading day in a row after having found demand at 35.35 in the prior session and at 35.33 two days ago. The last time this happened on July 2nd, L gained 2.46% on the following trading day.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
As prices are trading close to September's high at 37.90, upside momentum could accelerate should the stock mark new highs for the month.
Among the 11 market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Very Strong Up Move" stand out. Though it is usually interpreted as bullish, it has actually shown to be bearish for Loews. Out of 109 times, L closed lower 55.96% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the short side has been after 10 trading days, showing a win rate of 57.80% with an average market move of -0.82%.