LKQ closes higher for the 6th day in a row
LKQ Corporation (LKQ) Technical Analysis Report for Jan 11, 2019 | by Techniquant Editorial Team
Moving higher for the 6th day in a row, LKQ finished the week 10.45% higher at 26.32 after edging higher $0.13 (0.5%) today, outperforming the S&P 500 (-0.01%). Today's close at 26.32 marks the highest recorded closing price since December 6, 2018. Trading up to $0.28 lower after the open, the stock managed to reverse during the session as bulls took control ending the day above its opening price. The last time this happened on Tuesday, LKQ gained 3.87% on the following trading day. Closing above Thursday's high at 26.21, the share confirmed its breakout through the previous session high after trading up to $0.26 above it intraday.
Daily Candlestick Chart (LKQ as at Jan 11, 2019):
Friday's trading range has been $0.74 (2.85%), that's below the last trading month's daily average range of $0.90. Things look different on the weekly timeframe, where the market's trading range of the last week has been way above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for LKQ.
Buyers managed to take out the key technical resistance level at 26.22 (now S1), which is likely to act as support going forward.
With another close above the upper Bollinger Band, prices are confirming their strong upward momentum in the short-term. A drop back into the Bollinger Band on the next trading day though could signal a potential change in momentum that might lead to a correction back down towards the center of the Bollinger Bands at 24.44.
While the market is experiencing a short-term uptrend, this could just be a correction, as both the medium and long-term trends are still bearish.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Bullish Intraday Reversal" stand out. Its common bullish interpretation has been confirmed for LKQ. Out of 553 times, LKQ closed higher 52.80% 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 57.69% with an average market move of 0.87%.