LH rises to highest close since April 27th
Laboratory Corporation of America Holdings (LH) Technical Analysis Report for Jun 01, 2020 | by Techniquant Editorial Team
LH ended Monday at 177.02 gaining $1.70 (0.97%) on low volume, outperforming the S&P 500 (0.38%). Today's close at 177.02 marks the highest recorded closing price since April 27th. 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 Jun 01, 2020):
Monday's trading range has been $5.05 (2.87%), that's slightly below the last trading month's daily average range of $6.04. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently lower than usual for LH. Prices continued to consolidate within a tight trading range between 172.16 and 179.17 where it has been caught now for the last three trading days.
One bullish candlestick pattern matches today's price action, the Bullish Spinning Top. The last time a Bullish Spinning Top showed up on May 19th, LH gained 2.10% on the following trading day.
After trading down to 174.07 earlier during the day, the stock bounced off the key technical support level at 174.11 (S1). The failure to close below the support might increase that levels importance as support going forward.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Buying could speed up should prices move above the close-by swing high at 179.17 where further buy stops might get triggered. Selling could accelerate should prices move below the nearby swing low at 172.16 where further sell stops might get activated. Trading close to April's high at 187.70 we could see further upside momentum if potential buy stops at the level get triggered.
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 462 times, LH closed higher 59.31% 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 57.58% with an average market move of 0.28%.