FBHS dominated by bulls lifting the market higher throughout the day
Fortune Brands Home & Security Inc. (FBHS) Technical Analysis Report for Jul 12, 2019 | by Techniquant Editorial Team
FBHS ended the week -0.69% lower at 56.13 after surging $1.22 (2.22%) today, notably outperforming the S&P 500 (0.46%). This is the biggest single-day gain in over three weeks. The bulls were in full control today, moving the market higher throughout the whole session.
Daily Candlestick Chart (FBHS as at Jul 12, 2019):
Friday's trading range has been $1.21 (2.19%), that's above the last trading month's daily average range of $1.04. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently lower than usual for FBHS.
Two candlestick patterns are matching today's price action, the Bullish Belt-hold and the White Candle which are both known as bullish patterns. The last time a Bullish Belt-hold showed up on June 4th, FBHS gained 1.88% on the following trading day.
The market managed to close back above the 20-day moving average at 55.56. Prices are trading close to the key technical resistance level at 57.02 (R1).
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
With prices trading close to this year's high at 58.15, upside momentum could speed up should the stock be able to break out to new highs for the year.
Among the eight market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bullish Belt-hold" stand out. Although it is usually interpreted as bullish, it has actually shown to be bearish for Fortune Brands. Out of 11 times, FBHS closed lower 63.64% 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 nine trading days, showing a win rate of 54.55% with an average market move of -0.17%.