LKQ closes below its opening price unable to hold early session gains
LKQ Corporation (LKQ) Technical Analysis Report for May 29, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, LKQ finished the month 5.01% higher at 27.46 after edging lower $0.25 (-0.9%) today on high volume, strongly underperforming the S&P 500 (0.48%). Trading $0.36 higher after the open, the stock was unable to hold its gains as the bears took control ending the day below its opening price. The last time this happened on May 5th, LKQ lost -3.92% on the following trading day. Ending the day with an indecisive close, neither buyers nor sellers were able to gain control during the session.
Daily Candlestick Chart (LKQ as at May 29, 2020):
Friday's trading range has been $0.81 (2.95%), that's below the last trading month's daily average range of $1.14. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for LKQ.
Two candlestick patterns are matching today's price action, the Northern Doji which is known as bearish pattern and one neutral pattern, the Doji.
While still in a long-term downtrend, the short and medium-term trends both turned bullish already.
Among the four market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "2 Consecutive Lower Closes" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for LKQ. Out of 304 times, LKQ closed higher 56.58% 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 60.53% with an average market move of 1.17%.