LH dominated by bulls lifting the market higher throughout the day
Laboratory Corporation of America Holdings (LH) Technical Analysis Report for Jan 11, 2019 | by Techniquant Editorial Team
Moving higher for the 4th day in a row, LH finished the week 3.09% higher at 131.91 after gaining $1.01 (0.77%) today on low volume, outperforming the S&P 500 (-0.01%). Today's close at 131.91 marks the highest recorded closing price since December 17, 2018. The bulls were in full control today, moving the market higher throughout the whole session. Closing above Thursday's high at 131.10, the share confirmed its breakout through the previous session high after trading up to $0.89 above it intraday.
Daily Candlestick Chart (LH as at Jan 11, 2019):
Friday's trading range has been $1.91 (1.47%), that's far below the last trading month's daily average range of $3.73. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently notably lower than usual for LH.
Three candlestick patterns are matching today's price action, the Bullish Short Candle and the White Candle which are both known as bullish patterns and one bearish pattern, the Bearish Hikkake Pattern. The last time a Bearish Hikkake Pattern showed up on Wednesday, LH actually gained 0.93% on the following trading day.
Prices are trading close to the key technical support level at 130.59 (S1).
Although the market is experiencing a short-term uptrend, this could just be a correction, as both the medium and long-term trends are still bearish.
Among the eight market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Up Close near high of period" stand out. Its common bullish interpretation has been confirmed for Laboratory. Out of 567 times, LH closed higher 53.62% 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 57.32% with an average market move of 0.36%.