LVGO stuck within tight trading range
Livongo Health Inc. (LVGO) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team
LVGO finished Wednesday at 124.10 losing $0.33 (-0.27%), but still slightly outperforming the S&P 500 (-0.46%). Trading $3.13 higher after the open, Livongo 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 missed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (LVGO as at Sep 16, 2020):
Wednesday's trading range has been $5.87 (4.71%), that's slightly below the last trading month's daily average range of $6.81. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently just the same than usual for LVGO. Prices continued to consolidate within a tight trading range between 121.86 and 127.73 where it has been caught now for the last three trading days.
In a volatile session, prices traded above the previous day's high as well as below the prior day's low, forming a bearish Outside Bar. The last time this happened on September 2nd, LVGO lost -8.83% on the following trading day. Additionally, three candlestick patterns are matching today's price action, the Last Engulfing Bottom Pattern which is known as bullish pattern and two bearish patterns, the Bearish Spinning Top and the Bearish High-Wave Candle.
After trading as low as 121.86 during the day, the stock found support at the 50-day moving average at 122.56.
Though the share is currently in a short-term downtrend, this might just be a correction, as both the medium and long-term trends are still bullish.
Buying could speed up should prices move above the nearby swing high at 131.62 where further buy stops might get triggered. Selling could accelerate should prices move below the close-by swing low at 120.06 where further sell stops might get activated. Further selling could move prices lower should the market test August's nearby low at 111.35.
Among the eight market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bearish High-Wave Candle" stand out. Its common bearish interpretation has been confirmed for Livongo. Out of 4 times, LVGO closed lower 100.00% 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 75.00% with an average market move of -3.38%.