LB closes lower for the 2nd day in a row
L Brands Inc. (LB) Technical Analysis Report for Jul 31, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, LB finished the month 63.06% higher at 24.41 after losing $0.13 (-0.53%) today, notably underperforming the S&P 500 (0.77%). Trading $0.49 higher after the open, the share was unable to hold its gains as the bears took control ending the day below its opening price. Closing within the prior day's range, prices missed to decisively move beyond the previous day's trading range.
Daily Candlestick Chart (LB as at Jul 31, 2020):
Friday's trading range has been $1.04 (4.26%), that's slightly above the last trading month's daily average range of $0.90. Weekly volatility is also higher, being way above the market's average weekly trading range. The longer-term, monthly volatility is currently significantly higher than usual for LB.
Three candlestick patterns are matching today's price action, the Bullish Hikkake Pattern which is known as bullish pattern, one bearish pattern, the Northern Doji and one neutral pattern, the Doji.
After having been unable to move above 25.16 in the prior session, L Brands ran into sellers again around the same price level today, missing to move higher than 24.91.
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 18.71. The last time this happened on July 20th, LB actually gained 3.23% on the following trading day.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Northern Doji" stand out. Although it is usually interpreted as bearish, it has actually shown to be bullish for L Brands. Out of 64 times, LB closed higher 57.81% 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 62.50% with an average market move of 2.45%.