LHCG pops to highest close ever
LHC Group (LHCG) Technical Analysis Report for Jun 30, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, LHCG ended the month 7.27% higher at 174.32 after gaining $2.13 (1.24%) today, slightly underperforming the S&P 500 (1.54%). Today's close at 174.32 marks the highest recorded closing price ever. Trading up to $3.87 lower after the open, the market managed to reverse during the session as bulls took control ending the day above its opening price. Closing above Monday's high at 172.57, the share confirmed its breakout through the previous session high after trading up to $2.43 above it intraday.
Daily Candlestick Chart (LHCG as at Jun 30, 2020):
Tuesday's trading range has been $6.51 (3.78%), that's above the last trading month's daily average range of $5.60. 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 lower than usual for LHCG. Prices continued to consolidate within a tight trading range between 168.49 and 175.00 where it has been caught now for the last three trading days.
In a volatile session, prices traded above the prior day's high as well as below the previous day's low, forming a bullish Outside Bar. The last time this happened on June 18th, LHCG gained 3.63% on the following trading day.
Unable to break through the key technical resistance level at 174.45 (R1), the stock closed below it after spiking up to 175.00 earlier during the day. The failure to close above the resistance could increase that levels significance going forward. After having been unable to move lower than 169.04 in the prior session, LHC Group found buyers again around the same price level today at 168.49.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Among the nine market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "2 Consecutive Higher Closes" stand out. Its common bullish interpretation has been confirmed for LHC Group. Out of 309 times, LHCG closed higher 53.07% 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 54.05% with an average market move of 1.12%.