LH stuck within tight trading range
Laboratory Corporation of America Holdings (LH) Technical Analysis Report for Aug 10, 2018 | by Techniquant Editorial Team
LH ended the week 0.38% higher at 179.59 after losing $0.35 (-0.19%) today. Trading $0.89 higher after the open, the share was unable to hold its gains as the bears took control ending the day below its opening price. Closing within the previous day's range, prices failed to decisively move past the prior day's trading range in a lackluster session. Ending the day with an indecisive close, neither buyers nor sellers were able to gain control during the session.
Daily Candlestick Chart (LH as at Aug 10, 2018):
Friday's trading range was $1.73 (0.96%), that's below last trading month's daily average range of $3.19. Things look different on a weekly scale, where volatility is way below the markets average with the monthly volatility being slightly above average. Prices continued to consolidate within a tight trading range between 178.93 and 181.25 which it has been in now for the last three days.
In a volatile session, prices traded above the previous day's high as well as below the prior day's low, forming a bearish Outside Bar. Regardless of a strong opening the stock closed below the previous day's open and close, forming a bearish Engulfing Candle.
Prices are trading close to a key support level at 179.16. The market ran into sellers again today around 180.92 for the third trading day in a row after having found sellers at 180.91 in the prior session and at 181.25 two days ago. After spiking up to 180.92 during the day, Laboratory Corp. found resistance at the 20-day moving average at 180.45.
LH shows strength in the short-term supported by its long-term uptrend with only the medium-term trend being bearish.
Buying could speed up should prices move above the close-by swing high at 181.50 where further buy stops might get triggered. Selling could accelerate should prices move below the nearby swing low at 178.93 where further sell stops might get activated.