LH dominated by bulls lifting the market higher throughout the day


Laboratory Corporation of America Holdings (LH) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team

Highlights

LH enters Death Cross for the first time since May 16, 2019
LH dominated by bulls lifting the market higher throughout the day
LH closes higher for the 3rd day in a row
LH pushes through Wednesday's high

Overview

Moving higher for the 3rd day in a row, LH finished Thursday at 137.05 gaining $14.23 (11.59%), notably outperforming the S&P 500 (6.24%). The bulls were in full control today, moving the market higher throughout the whole session. Closing above Wednesday's high at 126.91, the stock confirmed its breakout through the prior session high after trading up to $11.53 above it intraday.

Daily Candlestick Chart (LH as at Mar 26, 2020):

Daily technical analysis candlestick chart for Laboratory Corporation of America Holdings (LH) as at Mar 26, 2020

Thursday's trading range has been $15.30 (12.38%), that's above the last trading month's daily average range of $12.85. Weekly volatility is also higher, being slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently significantly higher than usual for LH.

One bullish candlestick pattern matches today's price action, the White Candle. The last time a White Candle showed up on Tuesday, LH gained 4.29% on the following trading day.

While the market is experiencing a short-term uptrend, this might just be a correction, as both the medium and long-term trends are still bearish. With its 50-day moving average crossing below its 200-day moving average, the share has entered a so-called "Death Cross" for the first time since May 16, 2019. Showing increasing downward momentum in the short and medium-term the "Death Cross" is known to indicate a potential bear market on the horizon.

Among the seven market conditions that our pattern recognition engine identified today, the statistics for the Technical Indicators based market condition "Death Cross" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for Laboratory. Out of 9 times, LH closed higher 77.78% 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 66.67% with an average market move of 1.12%.


Market Conditions for LH as at Mar 26, 2020

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