LB runs into sellers again around 36.96
L Brands Inc. (LB) Technical Analysis Report for Nov 09, 2018 | by Techniquant Editorial Team
LB ended the week 7.83% higher at 36.50 after losing $0.46 (-1.24%) today on high volume, slightly underperforming the S&P 500 (-0.92%). Closing within the prior day's range, prices failed to decisively move beyond the previous day's trading range.
Daily Candlestick Chart (LB as at Nov 09, 2018):
Friday's trading range has been $1.02 (2.76%), that's slightly below the last trading month's daily average range of $1.05. Things look different on the weekly timeframe, where the market's trading range of the last week has been above the market's average weekly trading range. The longer-term, monthly volatility is currently notably higher than usual for LB.
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.
Prices are trading close to the key technical resistance level at 37.10 (R1). After having been unable to move above 37.10 in the previous session, the market ran into sellers again around the same price level today, failing to move higher than 36.96.
Crossing below the upper Bollinger Band, prices have lost at least some of their upward momentum in the short-term and might now be heading back down towards the mean of the Bollinger Bands at 32.28. The last time this happened on Tuesday, LB actually gained 0.81% on the following trading day.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Buying could accelerate should prices move above the close-by swing high at 37.10 where further buy stops might get triggered.
Among the three market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Close to Swing High" stand out. Though it is usually interpreted as neutral, it has actually shown to be bullish for L Brands. Out of 736 times, LB closed higher 56.93% 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 57.34% with an average market move of 0.81%.