LMT closes higher for the 3rd day in a row
Lockheed Martin Corporation (LMT) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, LMT finished Thursday at 350.33 gaining $30.66 (9.59%), notably outperforming the S&P 500 (6.24%). The bulls were in full control today, moving the market higher throughout the whole session. Closing above Wednesday's high at 329.82, the stock confirmed its breakout through the prior session high after trading up to $22.28 above it intraday.
Daily Candlestick Chart (LMT as at Mar 26, 2020):
Thursday's trading range has been $28.09 (8.62%), that's above the last trading month's daily average range of $23.38. Weekly volatility is also higher, being way above the market's average weekly trading range. The longer-term, monthly volatility is currently higher than usual for LMT.
One bullish candlestick pattern matches today's price action, the White Candle.
The market managed to close above the 20-day moving average at 339.76 for the first time since February 19th. When this moving average was crossed above the last time on February 4th, LMT gained 1.02% on the following trading day. Prices are trading close to the key technical resistance level at 360.34 (R1).
While Lockheed Martin is experiencing a short-term uptrend, this could just be a correction, as both the medium and long-term trends are still bearish.
Among the eight market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "3 Consecutive Higher Closes" stand out. Its common bullish interpretation has been confirmed for Lockheed Martin. Out of 171 times, LMT closed higher 55.56% 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 56.73% with an average market move of 0.50%.