LMT finds buyers around 434.31 for the third day in a row
Lockheed Martin Corporation (LMT) Technical Analysis Report for Feb 14, 2020 | by Techniquant Editorial Team
LMT finished the week -0.3% lower at 437.85 after gaining $3.15 (0.72%) today on low volume, outperforming the S&P 500 (0.18%) ahead of tomorrow's Presidents' Day market holiday. The bulls were in full control today, moving the market higher throughout the whole session. Closing within the prior day's range, prices failed to decisively move beyond the previous day's trading range in a lackluster session.
Daily Candlestick Chart (LMT as at Feb 14, 2020):
Friday's trading range has been $4.15 (0.95%), that's below the last trading month's daily average range of $5.95. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently notably lower than usual for LMT. Prices continued to consolidate within a tight trading range between 434.30 and 442.53 where it has been caught now for the whole last trading week.
During the whole day, prices traded within the prior day's range, unable to trade above the previous day's high or below the prior day's low forming an Inside Bar. Additionally, two candlestick patterns are matching today's price action, the Bullish Short Candle and the White Candle which are both known as bullish patterns.
Prices are trading close to the key technical support level at 434.30 (S1). Lockheed Martin found buyers again today around 434.31 for the third trading day in a row after having found demand at 434.30 in the previous session and at 434.60 two days ago. The last time this happened on Tuesday, LMT actually lost -0.74% on the following trading day.
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 nearby swing high at 442.53 where further buy stops might get activated. Selling could accelerate should prices move below the close-by swing low at 434.30 where further sell stops might get triggered.
Among the nine market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Close to Swing Low" stand out. Though it is usually interpreted as neutral, it has actually shown to be bullish for Lockheed Martin. Out of 651 times, LMT closed higher 53.92% 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 62.06% with an average market move of 0.80%.