LH breaks back above 200-day moving average
Laboratory Corporation of America Holdings (LH) Technical Analysis Report for Jun 30, 2020 | by Techniquant Editorial Team
Moving higher for the 4th day in a row, LH ended the month -5.25% lower at 166.11 after gaining $4.08 (2.52%) today, outperforming the S&P 500 (1.54%). Closing above Monday's high at 163.12, the share confirmed its breakout through the prior session high after trading up to $3.76 above it intraday.
Daily Candlestick Chart (LH as at Jun 30, 2020):
Tuesday's trading range has been $6.00 (3.7%), that's slightly above the last trading month's daily average range of $5.68. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for LH.
One bullish candlestick pattern matches today's price action, the White Candle.
Laboratory managed to close back above the 200-day moving average at 165.85 for the first time since June 18th. When this moving average was crossed above the last time on June 12th, LH gained 1.66% on the following trading day.
The market shows weakness in the short-term (in accordance with its long-term downtrend) with only the medium-term trend still being bullish.
Among the eight market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Close near high of period" stand out. Its common bullish interpretation has been confirmed for Laboratory. Out of 616 times, LH closed higher 52.27% 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 57.14% with an average market move of 0.32%.