LB climbs to highest close since March 13th
L Brands Inc. (LB) Technical Analysis Report for May 22, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, LB ended the week 38.86% higher at 15.08 after gaining $0.63 (4.36%) today, strongly outperforming the S&P 500 (0.24%) ahead of tomorrow's Memorial Day market holiday. Today's close at 15.08 marks the highest recorded closing price since March 13th. Closing above Thursday's high at 14.83, the market confirmed its breakout through the previous session high after trading up to $0.35 above it intraday.
Daily Candlestick Chart (LB as at May 22, 2020):
Friday's trading range has been $0.98 (6.76%), that's slightly below the last trading month's daily average range of $1.09. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for LB.
One bullish candlestick pattern matches today's price action, the White Candle.
With another close above the upper Bollinger Band, prices are confirming their strong upward momentum in the short-term. A drop back into the Bollinger Band on the next trading day although could signal a potential change in momentum that might lead to a correction back down towards the center of the Bollinger Bands at 12.03.
Though 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.
Further buying might move prices higher should the market test April's close-by high at 16.96.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "2 Consecutive Higher Closes" stand out. Its common bullish interpretation has been confirmed for L Brands. Out of 328 times, LB closed higher 52.74% 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 53.96% with an average market move of 0.44%.