LH closes higher for the 5th day in a row
Laboratory Corporation of America Holdings (LH) Technical Analysis Report for Feb 14, 2020 | by Techniquant Editorial Team
Moving higher for the 5th day in a row, LH ended the week 7.1% higher at 195.28 after gaining $0.55 (0.28%) today, slightly outperforming the S&P 500 (0.18%). Today's close at 195.28 marks the highest recorded closing price ever. Trading up to $2.53 lower after the open, the market managed to reverse during the session as bulls took control ending the day above its opening price. The last time this happened on January 23rd, LH actually lost -1.44% on the following trading day. Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (LH as at Feb 14, 2020):
Friday's trading range has been $4.12 (2.12%), that's above the last trading month's daily average range of $3.12. Weekly volatility is also higher, being way above the market's average weekly trading range. The longer-term, monthly volatility is currently 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.
Prices are trading close to the key technical resistance level at 196.36 (R1).
With another close above the upper Bollinger Band, prices are confirming their strong upward momentum in the short-term. A drop back into the Bollinger Band on the next trading day while might signal a potential change in momentum that could lead to a correction back down towards the center of the Bollinger Bands at 182.22.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Buying might accelerate should prices move above the nearby swing high at 196.36 where further buy stops could get activated.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Close to Swing High" stand out. Though it is usually interpreted as neutral, it has actually shown to be bullish for Laboratory. Out of 809 times, LH closed higher 57.23% 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 58.59% with an average market move of 0.58%.