LB closes above its opening price after recovering from early selling pressure
L Brands Inc. (LB) Technical Analysis Report for Mar 15, 2019 | by Techniquant Editorial Team
LB finished the week 2.67% higher at 26.58 after gaining $0.35 (1.33%) today, outperforming the S&P 500 (0.5%). Trading up to $0.36 lower after the open, the market managed to reverse during the session as bulls took control ending the day above its opening price. The last time this happened on Tuesday, LB gained 3.08% on the following trading day. Closing within the previous day's range, prices missed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (LB as at Mar 15, 2019):
Friday's trading range has been $0.75 (2.85%), that's slightly below the last trading month's daily average range of $0.87. 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 LB.
After moving lower in the previous session, L Brands managed to close higher but below the prior day's open, forming a bullish Harami Candle.
Prices are trading close to the key technical resistance level at 27.23 (R1). After having been unable to move lower than 26.06 in the previous session, the stock found buyers again around the same price level today at 26.00.
The share shows weakness in the short-term (in accordance with its long-term downtrend) with only the medium-term trend still being bullish.
Buying might speed up should prices move above the close-by swing high at 27.26 where further buy stops could get triggered. With prices trading close to this year's low at 24.66, downside momentum might accelerate should LB break out to new lows for the year.
Among the four market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Close to Swing High" stand out. Although it is usually interpreted as neutral, it has actually shown to be bullish for L Brands. Out of 744 times, LB closed higher 56.59% 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 56.32% with an average market move of 0.63%.