LB breaks back above 20-day moving average
L Brands Inc. (LB) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team
LB finished Wednesday at 29.84 gaining $0.85 (2.93%), strongly outperforming the S&P 500 (-0.46%). Closing above Tuesday's high at 29.65, the stock confirmed its breakout through the previous session high after trading up to $0.64 above it intraday.
Daily Candlestick Chart (LB as at Sep 16, 2020):
Wednesday's trading range has been $1.45 (4.96%), that's slightly above the last trading month's daily average range of $1.24. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently lower than usual for LB.
L Brands managed to close back above the 20-day moving average at 29.60 for the first time since September 4th. When this moving average was crossed above the last time on July 8th, LB actually lost -0.96% on the following trading day.
Though the market is currently in a short-term downtrend, this might just be a correction, as both the medium and long-term trends are still bullish.
With prices trading close to this year's high at 31.93, upside momentum could speed up should the share be able to break out to new highs for the year.
Among the four market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bounced off Technical Support S1" stand out. Its common bullish interpretation has been confirmed for L Brands. Out of 386 times, LB closed higher 54.66% 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 55.70% with an average market move of 0.40%.