LM closes within previous day's range after lackluster session
Legg Mason Inc. (LM) Technical Analysis Report for Jun 29, 2020 | by Techniquant Editorial Team
LM finished Monday at 49.67 losing $0.05 (-0.1%), notably underperforming the S&P 500 (1.47%). Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range in a lackluster session.
Daily Candlestick Chart (LM as at Jun 29, 2020):
Monday's trading range has been $0.07 (0.14%), that's below the last trading month's daily average range of $0.14. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for LM.
During the whole day, prices traded within the previous day's range, unable to trade above the prior day's high or below the previous day's low forming an Inside Bar.
Prices are trading close to the key technical resistance level at 49.75 (R1).
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Buying might speed up should prices move above the nearby swing high at 49.81 where further buy stops could get activated. Selling might accelerate should prices move below the close-by swing low at 49.50 where further sell stops could get triggered. As prices are trading close to June's low at 49.47, downside momentum might speed up should Legg Mason mark new lows for the month.
Among the two market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Close to Swing Low" stand out. While it is usually interpreted as neutral, it has actually shown to be bullish for Legg Mason. Out of 739 times, LM closed higher 50.47% 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 seven trading days, showing a win rate of 51.01% with an average market move of 0.10%.