LKQ finds buyers around 28.22 for the third day in a row
LKQ Corporation (LKQ) Technical Analysis Report for Oct 12, 2018 | by Techniquant Editorial Team
LKQ ended the week -5.03% lower at 28.53 after gaining $0.21 (0.74%) today, underperforming the S&P 500 (1.42%). Closing within the previous day's range, prices missed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (LKQ as at Oct 12, 2018):
Friday's trading range has been $0.67 (2.33%), that's slightly below the last trading month's daily average range of $0.69. Things look different on the weekly timeframe, where the market's trading range of the last week has been above the market's average weekly trading range. The longer-term, monthly volatility is currently higher than usual for LKQ.
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.
Prices are trading close to the key technical support level at 28.18 (S1). The stock found buyers again today around 28.22 for the third trading day in a row after having found demand at 28.18 in the prior session and at 28.30 two days ago.
Crossing above the lower Bollinger Band, prices have lost at least some of their downward momentum in the short-term and could now be heading back up towards the mean of the Bollinger Bands at 31.03. The last time this happened on Monday, LKQ actually lost -1.52% on the following trading day.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Selling might speed up should prices move below the close-by swing low at 28.18 where further sell stops could get activated. 2017's low at 27.85 is within reach and we might see further downside momentum should the market break out beyond.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Close to S1 Support" stand out. Its common bullish interpretation has been confirmed for LKQ Corporation. Out of 1,161 times, LKQ closed higher 55.04% 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 55.64% with an average market move of 0.78%.