LOGM dominated by bears dragging the market lower throughout the day
LogMeIn Inc. (LOGM) Technical Analysis Report for May 22, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, LOGM finished the week -1.47% lower at 84.07 after tanking $0.84 (-0.99%) today on high volume, notably underperforming the S&P 500 (0.24%) ahead of tomorrow's Memorial Day market holiday. This is the biggest single-day loss in over a month. Today's close at 84.07 marks the lowest recorded closing price since April 7th. The bears were in full control today, moving the market lower throughout the whole session. Closing below Thursday's low at 84.81, the share confirmed its breakout through the prior session low after trading up to $0.91 below it intraday.
Daily Candlestick Chart (LOGM as at May 22, 2020):
Friday's trading range has been $1.20 (1.41%), that's far above the last trading month's daily average range of $0.44. Weekly volatility is also higher, being slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for LOGM.
One bearish candlestick pattern matches today's price action, the Black Candle.
The market closed below the 100-day moving average at 84.48 for the first time since March 25th. When this moving average was crossed below the last time on March 16th, LOGM actually gained 9.76% on the following trading day. After having been unable to move above 85.17 in the previous session, LogMeIn ran into sellers again around the same price level today, missing to move higher than 85.10.
Crossing below the lower Bollinger Band for the first time since March 16th, prices have shown unusually strong downward momentum in the short-term. This could either indicate a potential selling climax after which prices might head back up towards the mean of the Bollinger Bands at 85.10 or signal the beginning of a strong momentum breakout leading to even lower prices.
The stock shows weakness in the short-term (in accordance with its long-term downtrend) with only the medium-term trend still being bullish.
Among the 13 market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bearish Break through SMA 100" stand out. Although it is usually interpreted as bearish, it has actually shown to be bullish for LogMeIn. Out of 51 times, LOGM closed higher 60.78% 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 68.63% with an average market move of 2.31%.