LPI declines to lowest close ever
Laredo Petroleum Inc. (LPI) Technical Analysis Report for Feb 14, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, LPI ended the week -11.76% lower at 1.50 after losing $0.06 (-3.85%) today on low volume, strongly underperforming the S&P 500 (0.18%) ahead of tomorrow's Presidents' Day market holiday. Today's close at 1.50 marks the lowest recorded closing price ever. Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range in a lackluster session.
Daily Candlestick Chart (LPI as at Feb 14, 2020):
Friday's trading range has been $0.11 (7.05%), that's below the last trading month's daily average range of $0.13. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for LPI.
One bearish candlestick pattern matches today's price action, the Black Candle.
After having been unable to move above 1.58 in the previous session, Laredo Petroleum ran into sellers again around the same price level today, failing to move higher than 1.59. The last time this happened on Wednesday, LPI lost -1.89% on the following trading day.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Selling might speed up should prices move below the close-by swing low at 1.43 where further sell stops could get triggered.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "2 Consecutive Lower Closes" stand out. Its common bearish interpretation has been confirmed for Laredo Petroleum. Out of 240 times, LPI closed lower 52.50% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the short side has been after 10 trading days, showing a win rate of 56.67% with an average market move of -1.20%.