LNC finds buyers at key support level
Lincoln National Corporation (LNC) Technical Analysis Report for Feb 14, 2020 | by Techniquant Editorial Team
LNC finished the week 2.77% higher at 61.11 after edging lower $0.06 (-0.1%) today, slightly underperforming the S&P 500 (0.18%) ahead of tomorrow's Presidents' Day market holiday. Trading $0.48 higher after the open, Lincoln National was unable to hold its gains as the bears took control ending the day below its opening price. Closing within the prior day's range, prices missed to decisively move beyond the previous day's trading range.
Daily Candlestick Chart (LNC as at Feb 14, 2020):
Friday's trading range has been $1.04 (1.7%), that's slightly below the last trading month's daily average range of $1.22. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently higher than usual for LNC. Prices continued to consolidate within a tight trading range between 60.48 and 61.79 where it has been caught now for the last three trading days.
Two candlestick patterns are matching today's price action, the Bearish Spinning Top and the Bearish High-Wave Candle which are both known as bearish patterns.
After trading down to 60.64 earlier during the day, the stock bounced off the key technical support level at 61.03 (S1). The failure to close below the support could increase that levels significance as support going forward. After having been unable to move lower than 60.48 in the prior session, the share found buyers again around the same price level today at 60.64. The last time this happened on Monday, LNC gained 1.41% on the following trading day.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Buying might speed up should prices move above the close-by swing high at 61.79 where further buy stops could get triggered. Selling might accelerate should prices move below the nearby swing low at 60.48 where further sell stops could get activated.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bounced off Technical Support S1" stand out. Its common bullish interpretation has been confirmed for Lincoln National. Out of 425 times, LNC closed higher 56.47% 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 55.76% with an average market move of 0.55%.