LPI finds buyers again around 10.93
Laredo Petroleum Inc. (LPI) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team
LPI ended Wednesday at 11.19 gaining $0.29 (2.66%) on high volume, significantly outperforming the S&P 500 (-0.46%). Trading $0.49 higher after the open, the stock was unable to hold its gains as the bears took control ending the day below its opening price. 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 Sep 16, 2020):
Wednesday's trading range has been $0.76 (6.79%), that's below the last trading month's daily average range of $0.99. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for LPI.
During the whole day, prices traded within the previous day's range, unable to trade above the prior day's high or below the previous day's low forming an Inside Bar. Additionally, two candlestick patterns are matching today's price action, the Southern Doji which is known as bullish pattern and one neutral pattern, the Doji.
Prices are trading close to the key technical resistance level at 11.74 (R1). After having been unable to move lower than 10.83 in the prior session, the market found buyers again around the same price level today at 10.93. The last time this happened on August 27th, LPI gained 7.71% on the following trading day.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Buying could accelerate should prices move above the nearby swing high at 11.80 where further buy stops might get triggered. Selling could speed up should prices move below the close-by swing low at 10.39 where further sell stops might get activated.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Close to Swing Low" stand out. While it is usually interpreted as neutral, it has actually shown to be bearish for Laredo Petroleum. Out of 696 times, LPI closed lower 51.15% 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 55.03% with an average market move of 0.16%.