LMT closes within prior day's range after lackluster session
Lockheed Martin Corporation (LMT) Technical Analysis Report for Sep 13, 2019 | by Techniquant Editorial Team
LMT finished the week -0.44% lower at 384.86 after losing $1.77 (-0.46%) today, slightly underperforming the S&P 500 (-0.07%). The bears were in full control today, moving the market lower throughout the whole session. Closing within the previous day's range, prices missed to decisively move beyond the prior day's trading range in a lackluster session.
Daily Candlestick Chart (LMT as at Sep 13, 2019):
Friday's trading range has been $4.17 (1.08%), that's below the last trading month's daily average range of $5.75. Things look different on the weekly timeframe, where the market's trading range of the last week has been above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for LMT.
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. Additionally, one bearish candlestick pattern matches today's price action, the Black Candle. The last time a Black Candle showed up on Monday, LMT actually gained 0.29% on the following trading day.
Prices are trading close to the key technical resistance level at 386.93 (R1). After having been unable to move lower than 383.27 in the prior session, the share found buyers again around the same price level today at 383.60.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Buying could speed up should prices move above the close-by swing high at 388.51 where further buy stops might get activated.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Black Candle" stand out. While it is usually interpreted as bearish, it has actually shown to be bullish for Lockheed Martin. Out of 525 times, LMT closed higher 54.29% 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 61.33% with an average market move of 0.87%.