LEG closes higher for the 2nd day in a row
Leggett & Platt Incorporated (LEG) Technical Analysis Report for Jun 30, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, LEG ended the month 14.91% higher at 35.15 after gaining $0.54 (1.56%) today, slightly outperforming the S&P 500 (1.54%). Closing above Monday's high at 34.63, the stock confirmed its breakout through the previous session high after trading up to $0.73 above it intraday.
Daily Candlestick Chart (LEG as at Jun 30, 2020):
Tuesday's trading range has been $1.15 (3.34%), that's below the last trading month's daily average range of $1.72. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently lower than usual for LEG.
Two candlestick patterns are matching today's price action, the Bullish Short Candle and the White Candle which are both known as bullish patterns.
The market managed to close back above the 20-day moving average at 34.84 for the first time since June 23rd. When this moving average was crossed above the last time on June 23rd, LEG actually lost -4.95% on the following trading day.
The share shows weakness in the short-term (in accordance with its long-term downtrend) with only the medium-term trend still being bullish.
Buying might accelerate should prices move above the nearby swing high at 35.75 where further buy stops could get activated.
Among the 10 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 Leggett & Platt. Out of 420 times, LEG closed higher 60.00% 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 58.33% with an average market move of 0.38%.