LMT ends the day on a bearish note closing near the low of the day
Lockheed Martin Corporation (LMT) Technical Analysis Report for Feb 20, 2020 | by Techniquant Editorial Team
Moving lower for the 3rd day in a row, LMT finished Thursday at 425.97 tanking $8.51 (-1.96%), significantly underperforming the S&P 500 (-0.38%). This is the biggest single-day loss in over six months. The bears were in full control today, moving the market lower throughout the whole session. Ending with a weak close near the low of the day sets a bearish note for the next session.
Daily Candlestick Chart (LMT as at Feb 20, 2020):
Thursday's trading range has been $10.76 (2.48%), that's far above the last trading month's daily average range of $6.33. Weekly volatility is also higher, being slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently notably lower than usual for LMT.
Two candlestick patterns are matching today's price action, the Bullish Hikkake Pattern which is known as bullish pattern and one bearish pattern, the Black Candle. The last time a Bullish Hikkake Pattern showed up on January 30th, LMT actually lost -1.78% on the following trading day.
Prices are trading close to the key technical support level at 423.01 (S1). The share closed below the 20-day moving average at 434.07 for the first time since February 3rd.
Though the market is currently in a short-term downtrend, this could just be a correction, as both the medium and long-term trends are still bullish.
As prices are trading close to February's low at 422.04, downside momentum might accelerate should the stock mark new lows for the month.
Among the 10 market conditions that our pattern recognition engine identified today, the statistics for the Technical Indicators based market condition "RSI(2) below 20" stand out. Its common bullish interpretation has been confirmed for Lockheed Martin. Out of 241 times, LMT closed higher 55.60% 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 67.63% with an average market move of 1.36%.