LH dominated by bears dragging the market lower throughout the day
Laboratory Corporation of America Holdings (LH) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team
LH ended Wednesday at 185.31 losing $0.61 (-0.33%), but still slightly outperforming the S&P 500 (-0.46%). The bears were in full control today, moving the market lower throughout the whole session. Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range in a lackluster session.
Daily Candlestick Chart (LH as at Sep 16, 2020):
Wednesday's trading range has been $3.03 (1.62%), that's below the last trading month's daily average range of $4.55. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly above 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 previous day's range, unable to trade above the prior day's high or below the previous day's low forming an Inside Bar. Additionally, two candlestick patterns are matching today's price action, the Bearish Short Candle and the Black Candle which are both known as bearish patterns.
Laboratory closed back below the 50-day moving average at 185.83. When this moving average was crossed below the last time on August 21st, LH lost -0.86% on the following trading day.
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 188.81 where further buy stops might get triggered.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bearish Short Candle" stand out. Although it is usually interpreted as bearish, it has actually shown to be bullish for Laboratory. Out of 60 times, LH closed higher 58.33% 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 65.00% with an average market move of 1.15%.