LW closes lower for the 3rd day in a row
Lamb Weston Holdings Inc. (LW) Technical Analysis Report for Jan 24, 2020 | by Techniquant Editorial Team
Moving lower for the 3rd day in a row, LW finished the week 0.22% higher at 90.70 after losing $0.19 (-0.21%) today, but still outperforming the S&P 500 (-0.9%). Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (LW as at Jan 24, 2020):
Friday's trading range has been $0.87 (0.96%), that's slightly below the last trading month's daily average range of $1.58. Weekly volatility is also lower, being way below the market's average weekly trading range. The longer-term, monthly volatility is currently higher than usual for LW.
Although the stock is currently in a short-term downtrend, this could just be a correction, as both the medium and long-term trends are still bullish.
Selling might accelerate should prices move below the close-by swing low at 90.21 where further sell stops could get activated.
Among the two market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "3 Consecutive Lower Closes" stand out. While it is usually interpreted as bearish, it has actually shown to be bullish for Lamb Weston. Out of 35 times, LW closed higher 68.57% 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 71.43% with an average market move of 2.05%.