LNC closes within prior day's range
Lincoln National Corporation (LNC) Technical Analysis Report for Jul 31, 2020 | by Techniquant Editorial Team
LNC finished the month 1.3% higher at 37.27 after gaining $0.34 (0.92%) today on high volume, slightly outperforming the S&P 500 (0.77%). Trading up to $0.91 lower after the open, Lincoln National managed to reverse during the session as bulls took control ending the day above 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 Jul 31, 2020):
Friday's trading range has been $1.56 (4.22%), that's slightly above the last trading month's daily average range of $1.52. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for LNC.
Two candlestick patterns are matching today's price action, the Bullish Spinning Top and the Takuri Line which are both known as bullish patterns. The last time a Takuri Line showed up on March 23rd, LNC gained 31.70% on the following trading day.
After trading down to 36.08 earlier during the day, the stock bounced off the key technical support level at 36.93 (S1). The failure to close below the support could increase that levels significance as support going forward.
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 nearby swing high at 38.44 where further buy stops could get activated. Selling might accelerate should prices move below the close-by swing low at 35.55 where further sell stops could get triggered.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Takuri Line" stand out. Its common bullish interpretation has been confirmed for Lincoln National. Out of 53 times, LNC closed higher 62.26% of the time on the next trading day after the market condition occurred.