LEG slides to lowest close since January 21, 2016
Leggett & Platt Incorporated (LEG) Technical Analysis Report for Oct 12, 2018 | by Techniquant Editorial Team
Moving lower for the 4th day in a row, LEG ended the week -7.18% lower at 38.92 after losing $0.14 (-0.36%) today, notably underperforming the S&P 500 (1.42%). Today's close at 38.92 marks the lowest recorded closing price since January 21, 2016. Closing below Thursday's low at 39.02, the market confirmed its breakout through the previous session low after trading up to $0.42 below it intraday.
Daily Candlestick Chart (LEG as at Oct 12, 2018):
Friday's trading range has been $1.03 (2.6%), that's slightly above the last trading month's daily average range of $0.87. 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 LEG.
One bearish candlestick pattern matches today's price action, the Black Candle.
Crossing above the lower Bollinger Band, prices have lost at least some of their downward momentum in the short-term and could now be heading back up towards the mean of the Bollinger Bands at 43.31. The last time this happened on Monday, LEG actually lost -4.76% on the following trading day.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "4 Consecutive Lower Closes" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for Leggett &. Out of 55 times, LEG closed higher 54.55% 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 70.91% with an average market move of 2.41%.