LEG finds support at 50-day moving average
Leggett & Platt Incorporated (LEG) Technical Analysis Report for Apr 16, 2018 | by Techniquant Editorial Team
LEG ended Monday at 44.77 gaining $0.44 (0.99%). Today's closing price of 44.77 marks the highest close since April 5th. Trading up to $0.31 lower after the open, the market managed to reverse during the session as bulls took control ending the day above its opening price. Closing above Friday's high at 44.71, the stock confirms its breakout through the prior session's high having traded $0.34 above it intraday. Ending the day with an indecisive close, neither buyers nor sellers were able to gain control during the session.
Daily Candlestick Chart (LEG as at Apr 16, 2018):
Monday's trading range was $0.69 (1.54%), that's below last trading month's daily average range of $0.91. Things look different on a weekly scale, where volatility is below the markets average with the monthly volatility being way below average.
Breaking through the key resistance level at 44.74 today, it is now likely to act as support going forward. After trading as low as 44.36 during the day, the share found support at the 50-day moving average at 44.48.
Although LEG is experiencing a short-term up trend, this could just be a correction, as both the medium and long term trends are still in negative territory. The market managed to break above the 50-day moving average at 44.48 today for the first time since April 4th.
Buying might accelerate should prices move above the close-by swing high at 45.26 where further buy stops could get activated. Selling might speed up should prices move below the nearby swing low at 44.04 where further sell stops could get triggered. As prices are trading close to April's high at 45.26, upside momentum might accelerate should the stock mark new highs for the month.