LKQ closes within previous day's range
LKQ Corporation (LKQ) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, LKQ finished Wednesday at 31.65 losing $0.20 (-0.63%) on high volume, slightly underperforming the S&P 500 (-0.46%). The bears were in full control today, moving the market lower throughout the whole session. 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 Sep 16, 2020):
Wednesday's trading range has been $0.71 (2.21%), that's slightly below the last trading month's daily average range of $0.89. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for LKQ.
One bearish candlestick pattern matches today's price action, the Black Candle.
Prices are trading close to the key technical support level at 30.99 (S1). The share closed back below the 20-day moving average at 31.81 for the first time since September 10th. When this moving average was crossed below the last time on September 10th, LKQ actually gained 2.71% on the following trading day.
Though the market is currently in a short-term downtrend, this might just be a correction, as both the medium and long-term trends are still bullish.
Selling could speed up should prices move below the close-by swing low at 30.99 where further sell stops might get triggered.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "2 Consecutive Lower Closes" stand out. Although it is usually interpreted as bearish, it has actually shown to be bullish for LKQ. Out of 304 times, LKQ closed higher 56.25% 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 60.20% with an average market move of 1.13%.