LDOS closes within prior day's range after lackluster session
Leidos Holdings Inc. (LDOS) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team
Moving higher for the 4th day in a row, LDOS finished Wednesday at 89.10 edging higher $0.36 (0.41%), outperforming the S&P 500 (-0.46%). Closing within the previous day's range, prices missed to decisively move beyond the prior day's trading range in a lackluster session.
Daily Candlestick Chart (LDOS as at Sep 16, 2020):
Wednesday's trading range has been $1.12 (1.26%), that's far below the last trading month's daily average range of $1.92. 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 LDOS.
One bearish candlestick pattern matches today's price action, the Shooting Star.
Unable to break through the key technical resistance level at 89.33 (R1), the share closed below it after spiking up to 90.09 earlier during the day. The failure to close above the resistance could increase that levels significance going forward.
The stock shows weakness in the short-term (in accordance with its long-term downtrend) with only the medium-term trend still being bullish.
As prices are trading close to September's high at 91.88, upside momentum might speed up should the market mark new highs for the month.
Among the four market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "4 Consecutive Higher Closes" stand out. Its common bullish interpretation has been confirmed for Leidos Holdings. Out of 94 times, LDOS closed higher 59.57% 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 55.32% with an average market move of 0.41%.