LPX stock price is trading below key moving averages and remains confined beneath it. Louisiana-Pacific Corporation (NYSE: LPX) witnessed a spike in selling volume showing the bears’ dominance in the market. On July 12 2023, LPX stock hit a swing high at $79.40. It tried to break the $80 level but buyers were unable to sustain.
Moreover, LPX stock gave weak second quarter results recently which is also a major reason behind the stock’s weakness. Net income was -$20.00 Million with profit margin of -3.27%, indicating weak financials.
Slow and steady LPX prices declined and eroded the complete gains. LPX stock closed the previous session at $60.68 with an intraday gain of 0.28%. The market capitalization stands at $4.375 Billion.
LPX is inside the bear grip and heavily shorted stock from the high levels. LPX stock witnessed a wild shorting in recent times, smashing the share price below 20, 50, 100 and 200 moving averages.
Currently, LPX shares require an influx of buyers to drive an upward movement toward recovery. Nevertheless, there’s an observed low trading volume. Simultaneously, LPX shares have descended beneath the 20, 50, 100, and 200-day daily moving averages.
LPX stock price declined by -20.49% throughout the month. Furthermore, Louisiana-Pacific stock gave a decent return of 5.68% within the past six months and 5.53% over the past year. These trends collectively indicate the challenges faced by LPX shares in their recovery efforts throughout the year.
Technical indicators suggest the downside trend of LPX stock price. Relative strength index showcases and moving average convergence divergence both indicate the slippage of LPX share price.
Analysts’ Take on LPX Stock
Out of 10 analysts covering LPX stock, 5 are recommending LPX as a Strong Buy, 2 are recommending Louisiana-Pacific as a Hold, 3 are recommending LPX as a sell.
The average Louisiana-Pacific stock price target is $76.00, which implies a potential upside of 25.25% from the current price of $60.68. The highest Louisiana-Pacific stock price target is $88.00, while the lowest LPX stock price target is $60.
Technical Overview of LPX Stock
At the time of publishing, LPX stock was trading below the 50 and 200-day SMAs simple moving averages, which are not supporting the price trend.
The current value of RSI is 32.97 points. The 14 SMA is below the median line in the oversold zone at 27.11 points which indicates that the LPX stock is bearish.
The MACD line at -3.10 and the signal line at -2.89 are below the zero line. The MACD signals more bearishness for the Louisiana-Pacific stock price.
Summary
LPX stock price at present requires substantial support from the buyers in order to make a recovery as it is facing major resistance from the previous resistance points and multiple moving averages. Overall, the technical indicators and LPX price action suggest that LPX stock is bearish and if buyers do not support the price, then the downtrend may continue.
Technical Levels
- Support Levels: Nearest support levels are $58.09 and $52.01.
- Resistance Levels: Nearest resistance levels are $63.81 and $66.39.
Disclaimer
The analysis provided in this article is for informational and educational purposes only. Do not rely on this information as financial, investment, or trading advice. Investing and trading in stock involves risk. Please assess your situation and risk tolerance before making any investment decisions.
Steve Anderson is an Australian crypto enthusiast. He is a specialist in management and trading for over 5 years. Steve has worked as a crypto trader, he loves learning about decentralisation, understanding the true potential of the blockchain.
Source: https://www.thecoinrepublic.com/2023/08/26/lpx-stock-will-louisiana-pacific-stock-reach-the-80-mark/