LMT unable to break through key resistance level
Lockheed Martin Corporation (LMT) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team
LMT finished Wednesday at 395.27 gaining $2.72 (0.69%), significantly outperforming the S&P 500 (-0.46%). Closing within the prior day's range, prices failed to decisively move beyond the previous day's trading range.
Daily Candlestick Chart (LMT as at Sep 16, 2020):
Wednesday's trading range has been $8.67 (2.22%), that's slightly above the last trading month's daily average range of $7.95. Weekly volatility is also higher, being above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for LMT.
Unable to break through the key technical resistance level at 396.67 (R1), the stock closed below it after spiking up to 399.60 earlier during the day. The failure to close above the resistance could increase that levels significance going forward. When prices bounced off a significant resistance level the last time on September 8th, LMT actually gained 1.32% on the following trading day.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Selling might accelerate should prices move below the nearby swing low at 386.89 where further sell stops could get activated. Further buying might move prices higher should the market test August's close-by high at 402.38.
Among the three 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 657 times, LMT closed higher 53.88% 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 63.01% with an average market move of 0.92%.