FBHS closes within prior day's range after lackluster session
Fortune Brands Home & Security Inc. (FBHS) Technical Analysis Report for Sep 13, 2019 | by Techniquant Editorial Team
FBHS ended the week 5.58% higher at 54.45 after gaining $0.20 (0.37%) today on low volume, slightly outperforming the S&P 500 (-0.07%). Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range in a lackluster session.
Daily Candlestick Chart (FBHS as at Sep 13, 2019):
Friday's trading range has been $0.52 (0.95%), that's far below the last trading month's daily average range of $1.14. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for FBHS.
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, two candlestick patterns are matching today's price action, the Bearish Short Candle and the Black Candle which are both known as bearish patterns. The last time a Bearish Short Candle showed up on August 12th, FBHS actually gained 1.45% on the following trading day.
Prices are trading close to the key technical resistance level at 55.05 (R1).
The market shows strength in the short-term supported by its long-term uptrend with only the medium-term trend being bearish.
Buying could accelerate should prices move above the nearby swing high at 55.05 where further buy stops might get activated. Further buying could move prices higher should the market test August's close-by high at 55.92.
Among the three market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bearish Short Candle" stand out. Although it is usually interpreted as bearish, it has actually shown to be bullish for Fortune Brands. Out of 54 times, FBHS closed higher 57.41% 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 57.41% with an average market move of 1.45%.