LAZ runs into sellers again around 25.96
Lazard LTD. LTD. Class A (LAZ) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team
LAZ finished Thursday at 25.14 gaining $1.49 (6.3%), slightly outperforming the S&P 500 (6.24%). Closing within the prior day's range, prices missed to decisively move beyond the previous day's trading range.
Daily Candlestick Chart (LAZ as at Mar 26, 2020):
Thursday's trading range has been $2.42 (10.25%), that's slightly below the last trading month's daily average range of $2.62. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently higher than usual for LAZ. Prices continued to consolidate within a tight trading range between 20.94 and 26.02 where it has been caught now for the whole last trading week.
During the whole day, prices traded within the prior day's range, unable to trade above the previous day's high or below the prior day's low forming an Inside Bar. Additionally, one bullish candlestick pattern matches today's price action, the White Candle.
Buyers managed to take out the key technical resistance level at 24.00 (now S1), which is likely to act as support going forward. The last time this happened on March 2nd, LAZ actually lost -2.92% on the following trading day. After having been unable to move above 26.02 in the previous session, the stock ran into sellers again around the same price level today, failing to move higher than 25.96.
While the share 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 speed up should prices move above the nearby swing high at 26.02 where further buy stops could get activated.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the Technical Indicators based market condition "RSI(2) above 80" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for Lazard LTD.. Out of 290 times, LAZ closed higher 54.48% 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 55.86% with an average market move of 0.28%.