LNC closes within prior day's range
Lincoln National Corporation (LNC) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team
LNC finished Wednesday at 34.45 gaining $0.86 (2.56%) on high volume, notably 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 (LNC as at Sep 16, 2020):
Wednesday's trading range has been $1.64 (4.87%), that's slightly above the last trading month's daily average range of $1.46. 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.
After having been unable to move lower than 33.48 in the prior session, the market found buyers again around the same price level today at 33.46.
Crossing above the lower Bollinger Band, prices have lost at least some of their downward momentum in the short-term and could now be heading back up towards the mean of the Bollinger Bands at 35.83. The last time this happened on March 13th, LNC actually lost -24.91% on the following trading day.
Although the share is currently in a short-term downtrend, this might just be a correction, as both the medium and long-term trends are still bullish.
Buying could accelerate should prices move above the close-by swing high at 35.79 where further buy stops might get triggered. Trading close to July's low at 32.44 we could see further downside momentum if potential sell stops at the level get activated.
Among the three market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Close to Swing High" stand out. While it is usually interpreted as neutral, it has actually shown to be bullish for Lincoln National. Out of 770 times, LNC closed higher 52.73% 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 56.62% with an average market move of 0.65%.