LPX runs into sellers around 25.42 for the forth day in a row
Louisiana-Pacific Corporation (LPX) Technical Analysis Report for Apr 16, 2019 | by Techniquant Editorial Team
LPX ended Tuesday at 25.20 losing $0.10 (-0.4%), slightly underperforming the S&P 500 (0.05%). Closing within the previous day's range, prices missed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (LPX as at Apr 16, 2019):
Tuesday's trading range has been $0.44 (1.74%), that's slightly below the last trading month's daily average range of $0.52. 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 LPX. Prices continued to consolidate within a tight trading range between 24.70 and 25.45 where it has been caught now for the whole last trading week.
After moving higher in the previous session, the stock closed lower but above the prior day's open today, forming a bearish Harami Candle. Additionally, two candlestick patterns are matching today's price action, the Bearish Hikkake Pattern and the Bearish Spinning Top which are both known as bearish patterns.
The market was sold again around 25.42 after having seen highs at 25.40, 25.45 and 25.40 in the last three trading sessions. Obviously there is something going on at that level. The last time this happened on February 25th, LPX lost -1.38% 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 25.45 where further buy stops might get triggered. Selling could accelerate should prices move below the nearby swing low at 24.80 where further sell stops might get activated. As prices are trading close to April's high at 25.75, upside momentum could speed up should Louisiana-Pacific mark new highs for the month.
Among the nine market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "High close to previous three Highs" stand out. Its common bearish interpretation has been confirmed for Louisiana-Pacific. Out of 21 times, LPX closed lower 57.14% 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 eight trading days, showing a win rate of 52.38% with an average market move of 0.36%.