OLN unable to break through key resistance level
Olin Corporation (OLN) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, OLN ended Thursday at 11.94 edging higher $0.16 (1.36%) on low volume, significantly underperforming the S&P 500 (6.24%). Closing within the prior day's range, prices missed to decisively move beyond the previous day's trading range in a lackluster session.
Daily Candlestick Chart (OLN as at Mar 26, 2020):
Thursday's trading range has been $1.20 (10.66%), that's below the last trading month's daily average range of $1.62. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for OLN.
During the whole day, prices traded within the prior day's range, unable to trade above the previous day's high or below the prior day's low forming an Inside Bar. Additionally, one bullish candlestick pattern matches today's price action, the White Candle.
Unable to break through the key technical resistance level at 12.16 (R1), Olin closed below it after spiking up to 12.46 earlier during the day. The failure to close above the resistance could increase that levels importance going forward. After having been unable to move above 12.51 in the previous session, the stock ran into sellers again around the same price level today, failing to move higher than 12.46. The last time this happened on March 20th, OLN lost -15.50% on the following trading day.
Though the market is experiencing a short-term uptrend, this might just be a correction, as both the medium and long-term trends are still bearish.
Buying could speed up should prices move above the nearby swing high at 12.51 where further buy stops might get activated.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "3 Consecutive Higher Closes" stand out. Its common bullish interpretation has been confirmed for Olin. Out of 164 times, OLN closed higher 54.27% 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 two trading days, showing a win rate of 58.54% with an average market move of 0.13%.