LYFT runs into sellers around 33.33 for the forth day in a row
Lyft Inc. (LYFT) Technical Analysis Report for Jun 30, 2020 | by Techniquant Editorial Team
LYFT ended the month 5.6% higher at 33.01 after edging lower $0.05 (-0.15%) today on low volume, strongly underperforming the S&P 500 (1.54%). Trading up to $0.55 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 previous day's range, prices missed to decisively move beyond the prior day's trading range in a lackluster session.
Daily Candlestick Chart (LYFT as at Jun 30, 2020):
Tuesday's trading range has been $1.11 (3.39%), that's far below the last trading month's daily average range of $1.88. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently just the same than usual for LYFT.
During the whole day, prices traded within the previous day's range, unable to trade above the prior day's high or below the previous day's low forming an Inside Bar. Additionally, one bullish candlestick pattern matches today's price action, the Bullish Spinning Top.
Prices are trading close to the key technical support level at 32.18 (S1). The share was sold again around 33.33 after having seen highs at 33.38, 33.17 and 33.42 in the last three trading sessions. Obviously there is something going on at that level. The last time this happened on June 25, 2019, LYFT lost -1.67% on the following trading day.
The market shows weakness in the short-term (in accordance with its long-term downtrend) with only the medium-term trend still being bullish.
Buying might speed up should prices move above the nearby swing high at 33.38 where further buy stops could get activated. Selling might accelerate should prices move below the close-by swing low at 31.04 where further sell stops could get triggered. As prices are trading close to June's low at 30.55, downside momentum might speed up should Lyft mark new lows for the month.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "High close to prior two Highs" stand out. Its common bearish interpretation has been confirmed for Lyft. Out of 9 times, LYFT closed lower 66.67% 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 88.89% with an average market move of -11.07%.