LNT closes above its opening price after recovering from early selling pressure
Alliant Energy Corporation (LNT) Technical Analysis Report for Jul 31, 2020 | by Techniquant Editorial Team
LNT ended the month 12.56% higher at 53.85 after gaining $0.08 (0.15%) today, underperforming the S&P 500 (0.77%). Trading up to $0.62 lower after the open, the stock managed to reverse during the session as bulls took control ending the day above its opening price. Closing within the previous day's range, prices missed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (LNT as at Jul 31, 2020):
Friday's trading range has been $0.89 (1.66%), that's slightly below the last trading month's daily average range of $1.00. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for LNT. Prices continued to consolidate within a tight trading range between 52.36 and 54.11 where it has been caught now for the whole last trading week.
During the whole day, prices traded within the previous day's range, unable to trade above the prior day's high or below the previous day's low forming an Inside Bar.
Prices are trading close to the key technical resistance level at 54.00 (R1). After having been unable to move above 53.95 in the prior session, the market ran into sellers again around the same price level today, failing to move higher than 53.90.
While still in a long-term downtrend, the short and medium-term trends both turned bullish already.
Buying could speed up should prices move above the nearby swing high at 54.11 where further buy stops might get activated.
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 High" stand out. Although it is usually interpreted as bearish, it has actually shown to be bullish for Alliant Energy. Out of 572 times, LNT closed higher 55.07% 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 59.79% with an average market move of 0.57%.