LMT finds buyers again around 388.02
Lockheed Martin Corporation (LMT) Technical Analysis Report for Aug 14, 2020 | by Techniquant Editorial Team
LMT ended the week 1.5% higher at 391.42 after gaining $2.18 (0.56%) today on low volume, outperforming the S&P 500 (-0.02%). Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (LMT as at Aug 14, 2020):
Friday's trading range has been $6.18 (1.59%), that's slightly below the last trading month's daily average range of $7.39. 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.
One bearish candlestick pattern matches today's price action, the Last Engulfing Top Pattern. The last time a Last Engulfing Top Pattern showed up on June 2nd, LMT actually gained 3.30% on the following trading day.
Unable to break through the key technical resistance level at 392.78 (R1), the market closed below it after spiking up to 394.20 earlier during the day. The failure to close above the resistance might increase that levels significance going forward. After having been unable to move lower than 387.00 in the previous session, Lockheed Martin found buyers again around the same price level today at 388.02.
The share shows strength in the short-term supported by its long-term uptrend with only the medium-term trend being bearish.
Buying could speed up should prices move above the close-by swing high at 399.49 where further buy stops might get activated. Selling could accelerate should prices move below the nearby swing low at 387.00 where further sell stops might get triggered.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Last Engulfing Top Pattern" stand out. While it is usually interpreted as bearish, it has actually shown to be bullish for Lockheed Martin. Out of 81 times, LMT closed higher 56.79% 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 61.73% with an average market move of 0.61%.