LEG closes above its opening price after recovering from early selling pressure
Leggett & Platt Incorporated (LEG) Technical Analysis Report for Feb 14, 2020 | by Techniquant Editorial Team
LEG finished the week 1.13% higher at 45.60 after gaining $0.14 (0.31%) today, slightly outperforming the S&P 500 (0.18%) ahead of tomorrow's Presidents' Day market holiday. Trading up to $0.28 lower after the open, the market managed to reverse during the session as bulls took control ending the day above its opening price. The last time this happened on January 30th, LEG actually lost -3.61% on the following trading day. Closing within the prior day's range, prices failed to decisively move beyond the previous day's trading range in a lackluster session.
Daily Candlestick Chart (LEG as at Feb 14, 2020):
Friday's trading range has been $0.51 (1.12%), that's below the last trading month's daily average range of $1.12. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently higher than usual for LEG.
Prices are trading close to the key technical support level at 44.97 (S1).
While still in a long-term uptrend, the short and medium-term trends both turned bearish already.
Buying might speed up should prices move above the nearby swing high at 46.14 where further buy stops could get triggered. Selling might accelerate should prices move below the close-by swing low at 44.70 where further sell stops could get activated.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Close near high of period" stand out. Its common bullish interpretation has been confirmed for Leggett & Platt. Out of 667 times, LEG closed higher 53.07% 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 0.63%.