LKQ finds buyers at key support level
LKQ Corporation (LKQ) Technical Analysis Report for Feb 13, 2019 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, LKQ ended Wednesday at 26.75 gaining $0.05 (0.19%), slightly underperforming the S&P 500 (0.3%). Closing within the prior day's range, prices missed to decisively move beyond the previous day's trading range.
Daily Candlestick Chart (LKQ as at Feb 13, 2019):
Wednesday's trading range has been $0.48 (1.79%), that's slightly below the last trading month's daily average range of $0.57. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently lower than usual for LKQ.
One bearish candlestick pattern matches today's price action, the Bearish Spinning Top.
After trading down to 26.52 earlier during the day, the market bounced off the key technical support level at 26.67 (S1). The failure to close below the support could increase that levels significance as support going forward. After having been unable to move lower than 26.47 in the prior session, the share found buyers again around the same price level today at 26.52. The last time this happened on February 6th, LKQ actually lost -2.89% on the following trading day.
Although the stock is experiencing a short-term uptrend, this might 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 Support/Resistance based market condition "Bounced off Technical Support S1" stand out. Its common bullish interpretation has been confirmed for LKQ. Out of 476 times, LKQ closed higher 58.19% 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 58.40% with an average market move of 0.97%.