LPLA closes above its opening price after recovering from early selling pressure
LPL Financial Holdings Inc. (LPLA) Technical Analysis Report for Jul 31, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, LPLA ended the month 0.79% higher at 79.02 after edging lower $0.24 (-0.3%) today on high volume, strongly underperforming the S&P 500 (0.77%) following Thursday's earnings report. Trading up to $1.15 lower after the open, the stock managed to reverse during the session as bulls took control ending the day above its opening price. Closing within the prior day's range, prices failed to decisively move beyond the previous day's trading range.
Daily Candlestick Chart (LPLA as at Jul 31, 2020):
LPLA reported earnings of $1.42 per share after Thursday's market close. With analysts having expected an EPS of $1.31, LPL Financial Holdings Inc. surpassed market expectations by 8.4%. The company's last earnings report was released on April 30, 2020, when LPL Financial Holdings Inc. reported earnings of $2.06 per share topping market expectations by 20.5%.
Friday's trading range has been $3.37 (4.36%), that's far above the last trading month's daily average range of $2.13. 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 LPLA.
One bullish candlestick pattern matches today's price action, the White Candle.
After trading as low as 76.16 during the day, LPL Financial found support at the 20-day moving average at 77.27. The last time this happened on May 13th, LPLA gained 3.64% on the following trading day.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Buying could speed up should prices move above the close-by swing high at 81.61 where further buy stops might get triggered.
Among the nine market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bounced off Technical Support S1" stand out. Its common bullish interpretation has been confirmed for LPL Financial. Out of 426 times, LPLA closed higher 57.51% 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 59.62% with an average market move of 1.22%.