LB breaks key support level
L Brands Inc. (LB) Technical Analysis Report for Aug 10, 2018 | by Techniquant Editorial Team
Moving lower for the 5th day in a row, LB finished the week -3.91% lower at 31.24 after losing $0.27 (-0.86%) today on high volume. Today's closing price of 31.24 marks the lowest close since July 30th. Trading $0.64 higher after the open, L Brands was unable to hold its gains as the bears took control ending the day below its opening price. Closing below Thursday's low at 31.32, the stock confirms its breakout through the prior session's low having traded $0.58 below it intraday. Ending the day with an indecisive close, neither buyers nor sellers were able to gain control during the session.
Daily Candlestick Chart (LB as at Aug 10, 2018):
Friday's trading range was $1.25 (3.99%), that's far above last trading month's daily average range of $0.86. Things look different on a weekly scale, where volatility is slightly below the markets average with the monthly volatility being way below average.
Breaking below the key support level at 31.31 today, it is now likely to act as resistance going forward. After spiking up to 31.99 during the day, the market found resistance at the 20-day moving average at 31.70.
Though the share is experiencing a short-term up trend, this might just be a correction, as both the medium and long term trends are still in negative territory.
With prices trading close to this year's low at 30.42, downside momentum could accelerate should LB break out to new lows for the year.