LNC runs into sellers around 36.19 for the forth day in a row
Lincoln National Corporation (LNC) Technical Analysis Report for May 22, 2020 | by Techniquant Editorial Team
LNC finished the week 6.87% higher at 35.00 after losing $0.94 (-2.62%) today, significantly underperforming the S&P 500 (0.24%) ahead of tomorrow's Memorial Day market holiday. Closing below Thursday's low at 35.48, the stock confirmed its breakout through the prior session low after trading up to $1.07 below it intraday.
Daily Candlestick Chart (LNC as at May 22, 2020):
Friday's trading range has been $1.78 (4.96%), that's slightly below the last trading month's daily average range of $2.11. Weekly volatility is also lower, being way below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for LNC.
One bearish candlestick pattern matches today's price action, the Black Candle. The last time a Black Candle showed up on Tuesday, LNC actually gained 2.01% on the following trading day.
The share was sold again around 36.19 after having seen highs at 36.55, 36.53 and 36.22 in the last three trading sessions. Obviously there is something going on at that level.
The market shows weakness in the short-term (in accordance with its long-term downtrend) with only the medium-term trend still being bullish.
Buying could accelerate should prices move above the close-by swing high at 36.55 where further buy stops might get triggered. Further buying could move prices higher should the market test April's nearby high at 37.37.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "High close to previous three Highs" stand out. Its common bearish interpretation has been confirmed for Lincoln National. Out of 20 times, LNC closed lower 60.00% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the short side has been after 10 trading days, showing a win rate of 75.00% with an average market move of -4.27%.