LPX finds buyers again around 33.40
Louisiana-Pacific Corporation (LPX) Technical Analysis Report for Feb 14, 2020 | by Techniquant Editorial Team
LPX ended the week 7.35% higher at 34.18 after gaining $0.45 (1.33%) today on high volume, notably outperforming the S&P 500 (0.18%) ahead of tomorrow's Presidents' Day market holiday. Today's close at 34.18 marks the highest recorded closing price since September 28, 1994. Closing above Thursday's high at 34.10, the stock confirmed its breakout through the previous session high after trading up to $0.18 above it intraday.
Daily Candlestick Chart (LPX as at Feb 14, 2020):
Friday's trading range has been $0.88 (2.61%), that's slightly above the last trading month's daily average range of $0.76. Weekly volatility is also higher, being way above the market's average weekly trading range. The longer-term, monthly volatility is currently higher than usual for LPX.
In a volatile session, prices traded above the prior day's high as well as below the previous day's low, forming a bullish Outside Bar. The last time this happened on Tuesday, LPX gained 2.15% on the following trading day. Additionally, two candlestick patterns are matching today's price action, the White Candle which is known as bullish pattern and one bearish pattern, the Last Engulfing Top Pattern.
After having been unable to move lower than 33.49 in the prior session, the market found buyers again around the same price level today at 33.40.
With another close above the upper Bollinger Band, prices are confirming their strong upward momentum in the short-term. A drop back into the Bollinger Band on the next trading day while might signal a potential change in momentum that could lead to a correction back down towards the center of the Bollinger Bands at 31.77.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Among the nine market conditions that our pattern recognition engine identified today, the statistics for the Technical Indicators based market condition "Close above the upper Bollinger Band" stand out. Its common bullish interpretation has been confirmed for Louisiana-Pacific. Out of 147 times, LPX closed higher 53.74% 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 59.18% with an average market move of 1.08%.