LPI closes within prior day's range after lackluster session
Laredo Petroleum Inc. (LPI) Technical Analysis Report for Feb 20, 2020 | by Techniquant Editorial Team
LPI ended Thursday at 1.52 flat, slightly outperforming the S&P 500 (-0.38%). Closing within the prior day's range, prices missed to decisively move beyond the previous day's trading range in a lackluster session.
Daily Candlestick Chart (LPI as at Feb 20, 2020):
Thursday's trading range has been $0.09 (5.96%), that's below the last trading month's daily average range of $0.12. Weekly volatility is also lower, being way below the market's average weekly trading range. The longer-term, monthly volatility is currently lower than usual for LPI.
Despite a weak opening the market managed to close above the prior day's open and close, forming a bullish Engulfing Candle. The last time this candlestick pattern showed up on September 23, 2019, LPI actually lost -2.94% on the following trading day.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Selling might accelerate should prices move below the close-by swing low at 1.39 where further sell stops could get triggered.
Among the three market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bullish Engulfing Candle" stand out. Although it is usually interpreted as bullish, it has actually shown to be bearish for Laredo Petroleum. Out of 61 times, LPI closed lower 57.38% 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 three trading days, showing a win rate of 52.46% with an average market move of -0.08%.