LNT unable to break through key resistance level
Alliant Energy Corporation (LNT) Technical Analysis Report for Oct 12, 2018 | by Techniquant Editorial Team
Moving lower for the 4th day in a row, LNT finished the week -2.64% lower at 42.46 after losing $0.16 (-0.38%) today, notably underperforming the S&P 500 (1.42%). Today's close at 42.46 marks the lowest recorded closing price since October 1st. Ending the day with an indecisive close, neither buyers nor sellers were able to gain control during the session.
Daily Candlestick Chart (LNT as at Oct 12, 2018):
Friday's trading range has been $0.66 (1.55%), that's slightly below the last trading month's daily average range of $0.77. Things look different on the weekly timeframe, where the market's trading range of the last week has been way above the market's average weekly trading range. The longer-term, monthly volatility is currently higher than usual for LNT.
Two candlestick patterns are matching today's price action, the Takuri Line which is known as bullish pattern and one bearish pattern, the Bearish Spinning Top.
After trading as low as 42.01 during the day, the stock found support at the 100-day moving average at 42.34. The last time this happened on October 4th, LNT gained 1.96% on the following trading day. Unable to break through the key technical resistance level at 42.65 (R1), the market closed below it after spiking up to 42.67 earlier during the day. The failure to close above the resistance might increase that levels significance going forward.
Although still in a long-term uptrend, the short and medium-term trends both turned bearish already.
Trading close to August's low at 41.39 we could see further downside momentum if potential sell stops at the level get activated.
Among the eight 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 Alliant Energy. Out of 52 times, LNT closed higher 65.38% 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 63.46% with an average market move of 0.70%.