LOGM pushes through Thursday's high
LogMeIn Inc. (LOGM) Technical Analysis Report for Jul 31, 2020 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, LOGM finished the month 1.23% higher at 85.81 after gaining $0.09 (0.1%) today, underperforming the S&P 500 (0.77%). Trading up to $0.06 lower after the open, the share managed to reverse during the session as bulls took control ending the day above its opening price. The last time this happened on Monday, LOGM actually lost -0.20% on the following trading day. Closing above Thursday's high at 85.80, the market confirmed its breakout through the previous session high after trading up to $0.04 above it intraday.
Daily Candlestick Chart (LOGM as at Jul 31, 2020):
Friday's trading range has been $0.11 (0.13%), that's below the last trading month's daily average range of $0.23. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for LOGM.
One bullish candlestick pattern matches today's price action, the Bullish Spinning Top.
Prices are trading close to the key technical support level at 85.69 (S1).
Though LogMeIn 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 nearby swing high at 85.90 where further buy stops might get activated. As prices are trading close to July's high at 85.90, upside momentum could speed up should the stock mark new highs for the month.
Among the five 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 LogMeIn. Out of 890 times, LOGM closed higher 50.79% 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 54.38% with an average market move of 1.02%.