FBHS closes higher for the 5th day in a row
Fortune Brands Home & Security Inc. (FBHS) Technical Analysis Report for Feb 14, 2020 | by Techniquant Editorial Team
Moving higher for the 5th day in a row, FBHS ended the week 3.17% higher at 72.99 after gaining $0.35 (0.48%) today, slightly outperforming the S&P 500 (0.18%) ahead of tomorrow's Presidents' Day market holiday. Today's close at 72.99 marks the highest recorded closing price since January 26, 2018. 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 (FBHS as at Feb 14, 2020):
Friday's trading range has been $0.87 (1.2%), that's below the last trading month's daily average range of $1.42. 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 FBHS. Prices continued to consolidate within a tight trading range between 71.86 and 73.28 where it has been caught now for the last three trading days.
After trading down to 72.41 earlier during the day, the share bounced off the key technical support level at 72.50 (S1). The failure to close below the support could increase that levels significance as support going forward. When prices bounced off a significant support level the last time on February 5th, FBHS actually lost -0.72% on the following trading day.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Selling might speed up should prices move below the nearby swing low at 71.86 where further sell stops could get activated. Trading close to 2018's high at 73.62 we might see further upside momentum if potential buy stops at the level get triggered.
Among the four market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bounced off Technical Support S1" stand out. Its common bullish interpretation has been confirmed for Fortune Brands. Out of 365 times, FBHS closed higher 56.44% 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 58.90% with an average market move of 1.02%.