LNT closes within prior day's range
Alliant Energy Corporation (LNT) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, LNT finished Wednesday at 53.06 gaining $0.30 (0.57%), strongly outperforming the S&P 500 (-0.46%). Closing within the prior day's range, prices missed to decisively move beyond the previous day's trading range.
Daily Candlestick Chart (LNT as at Sep 16, 2020):
Wednesday's trading range has been $1.05 (1.99%), that's slightly below the last trading month's daily average range of $1.09. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for LNT.
Prices are trading close to the key technical support level at 52.31 (S1). After spiking up to 53.67 during the day, Alliant Energy found resistance at the 20-day moving average at 53.54. The last time this happened on September 9th, LNT lost -3.16% on the following trading day. After having been unable to move lower than 52.60 in the prior session, the market found buyers again around the same price level today at 52.62.
Though the stock is currently in a short-term downtrend, this might just be a correction, as both the medium and long-term trends are still bullish.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bearish Bounce off SMA 20" stand out. While it is usually interpreted as bearish, it has actually shown to be bullish for Alliant Energy. Out of 50 times, LNT closed higher 58.00% 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 76.00% with an average market move of 1.72%.