LKQ pushes through Monday's high
LKQ Corporation (LKQ) Technical Analysis Report for Jun 30, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, LKQ finished the month -4.59% lower at 26.20 after gaining $0.37 (1.43%) today on low volume, slightly underperforming the S&P 500 (1.54%). Trading up to $0.35 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 25.93, the stock confirmed its breakout through the previous session high after trading up to $0.44 above it intraday.
Daily Candlestick Chart (LKQ as at Jun 30, 2020):
Tuesday's trading range has been $0.92 (3.57%), that's below the last trading month's daily average range of $1.41. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for LKQ.
After trading down to 25.45 earlier during the day, the share bounced off the key technical support level at 25.60 (S1). The failure to close below the support could increase that levels significance as support going forward. When prices bounced off a significant support level the last time on June 22nd, LKQ gained 1.19% on the following trading day.
LKQ shows weakness in the short-term (in accordance with its long-term downtrend) with only the medium-term trend still being bullish.
Buying might accelerate should prices move above the nearby swing high at 27.08 where further buy stops could get triggered.
Among the eight 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 443 times, LKQ closed higher 56.21% 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 55.98% with an average market move of 0.69%.