LMT closes higher for the 2nd day in a row
Lockheed Martin Corporation (LMT) Technical Analysis Report for May 22, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, LMT ended the week 2.39% higher at 369.00 after edging higher $0.18 (0.05%) today on low volume, slightly underperforming the S&P 500 (0.24%) ahead of tomorrow's Memorial Day market holiday. Closing within the prior day's range, prices missed to decisively move beyond the previous day's trading range in a lackluster session.
Daily Candlestick Chart (LMT as at May 22, 2020):
Friday's trading range has been $4.54 (1.23%), that's far below the last trading month's daily average range of $9.28. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for LMT. Prices continued to consolidate within a tight trading range between 362.11 and 374.00 where it has been caught now for the last three trading days.
One bearish candlestick pattern matches today's price action, the Bearish Hikkake Pattern.
Prices are trading close to the key technical support level at 362.11 (S1). After having been unable to move above 370.03 in the prior session, the market ran into sellers again around the same price level today, missing to move higher than 370.16. The last time this happened on May 15th, LMT actually gained 4.76% on the following trading day.
Lockheed Martin shows weakness in the short-term (in accordance with its long-term downtrend) with only the medium-term trend still being bullish.
Selling might speed up should prices move below the close-by swing low at 362.11 where further sell stops could get triggered.
Among the four market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bearish Hikkake Pattern" stand out. While it is usually interpreted as bearish, it has actually shown to be bullish for Lockheed Martin. Out of 133 times, LMT closed higher 59.40% 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 61.65% with an average market move of 0.93%.