LH finds buyers at key support level
Laboratory Corporation of America Holdings (LH) Technical Analysis Report for Dec 11, 2019 | by Techniquant Editorial Team
Moving lower for the 3rd day in a row, LH ended Wednesday at 167.42 edging lower $0.12 (-0.07%), slightly underperforming the S&P 500 (0.29%). Today's close at 167.42 marks the lowest recorded closing price since November 13th. Closing within the previous day's range, prices missed to decisively move beyond the prior day's trading range in a lackluster session.
Daily Candlestick Chart (LH as at Dec 11, 2019):
Wednesday's trading range has been $1.75 (1.04%), that's below the last trading month's daily average range of $2.68. Things look different on the weekly timeframe, where the market's trading range of the last week has been way above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for LH.
During the whole day, prices traded within the previous day's range, unable to trade above the prior day's high or below the previous day's low forming an Inside Bar. Additionally, one bullish candlestick pattern matches today's price action, the Hammer.
After trading down to 166.38 earlier during the day, Laboratory bounced off the key technical support level at 167.17 (S1). The failure to close below the support could increase that levels significance as support going forward. When prices bounced off a significant support level the last time on December 6th, LH actually lost -1.51% on the following trading day.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Among the three 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 472 times, LH closed higher 59.32% 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 57.63% with an average market move of 0.40%.