LHCG breaks back below 200-day moving average
LHC Group (LHCG) Technical Analysis Report for Mar 27, 2020 | by Techniquant Editorial Team
LHCG finished the week 4.06% higher at 124.41 after losing $5.79 (-4.45%) today on low volume, significantly underperforming the S&P 500 (-3.37%). Closing within the prior day's range, prices missed to decisively move beyond the previous day's trading range in a lackluster session.
Daily Candlestick Chart (LHCG as at Mar 27, 2020):
Friday's trading range has been $6.07 (4.82%), that's below the last trading month's daily average range of $10.42. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently notably lower than usual for LHCG.
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 bearish candlestick pattern matches today's price action, the Bearish Spinning Top. The last time a Bearish Spinning Top showed up on March 12th, LHCG actually gained 10.26% on the following trading day.
Prices are trading close to the key technical support level at 116.63 (S1). The market closed back below the 200-day moving average at 127.18. After having been unable to move lower than 120.71 in the previous session, the share found buyers again around the same price level today at 121.90.
Although still in a long-term uptrend, the short and medium-term trends both turned bearish already.
Buying could speed up should prices move above the close-by swing high at 134.06 where further buy stops might get triggered. Selling could accelerate should prices move below the nearby swing low at 116.56 where further sell stops might get activated.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bearish Break through SMA 200" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for LHC Group. Out of 35 times, LHCG closed higher 57.14% 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 60.00% with an average market move of 2.08%.