LH finds support at 20-day moving average
Laboratory Corporation of America Holdings (LH) Technical Analysis Report for Jul 17, 2019 | by Techniquant Editorial Team
LH finished Wednesday at 173.87 losing $1.18 (-0.67%), slightly underperforming the S&P 500 (-0.65%). Closing below Tuesday's low at 174.37, Laboratory confirmed its breakout through the prior session low after trading up to $1.43 below it intraday.
Daily Candlestick Chart (LH as at Jul 17, 2019):
Wednesday's trading range has been $1.83 (1.05%), that's far below the last trading month's daily average range of $2.88. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for LH.
After trading as low as 172.94 during the day, the stock found support at the 20-day moving average at 173.15. The last time this happened on June 18th, LH gained 2.05% on the following trading day.
Although the share is currently in a short-term downtrend, this could just be a correction, as both the medium and long-term trends are still bullish.
Buying might accelerate should prices move above the nearby swing high at 176.44 where further buy stops could get triggered. With prices trading close to this year's high at 177.84, upside momentum might speed up should the market be able to break out to new highs for the year.
Among the five 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 Laboratory. Out of 457 times, LH closed higher 59.74% 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 57.99% with an average market move of 0.45%.