LH finds buyers again around 192.43
Laboratory Corporation of America Holdings (LH) Technical Analysis Report for Aug 04, 2020 | by Techniquant Editorial Team
LH ended Tuesday at 194.77 losing $1.25 (-0.64%) on low volume, underperforming the S&P 500 (0.36%). Closing within the prior day's range, prices failed to decisively move beyond the previous day's trading range in a lackluster session.
Daily Candlestick Chart (LH as at Aug 04, 2020):
Tuesday's trading range has been $3.96 (2.06%), that's below the last trading month's daily average range of $5.10. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for LH.
During the whole day, prices traded within the prior day's range, unable to trade above the previous day's high or below the prior day's low forming an Inside Bar. Additionally, one bullish candlestick pattern matches today's price action, the White Candle.
Prices are trading close to the key technical support level at 194.08 (S1). After having been unable to move lower than 192.28 in the previous session, the market found buyers again around the same price level today at 192.43. The last time this happened on July 29th, LH gained 0.12% on the following trading day.
Although the share is currently in a short-term downtrend, this might just be a correction, as both the medium and long-term trends are still bullish.
Buying could speed up should prices move above the nearby swing high at 198.05 where further buy stops might get triggered. Selling could accelerate should prices move below the close-by swing low at 189.56 where further sell stops might get activated.
Among the four market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Close to Swing High" stand out. While it is usually interpreted as neutral, it has actually shown to be bullish for Laboratory. Out of 807 times, LH closed higher 57.37% 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 59.98% with an average market move of 0.78%.