FBHS closes above its opening price after recovering from early selling pressure
Fortune Brands Home & Security Inc. (FBHS) Technical Analysis Report for Jul 31, 2020 | by Techniquant Editorial Team
FBHS finished the month 19.66% higher at 76.50 after losing $0.49 (-0.64%) today, significantly underperforming the S&P 500 (0.77%). Trading up to $1.71 lower after the open, the stock managed to reverse during the session as bulls took control ending the day above its opening price. Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (FBHS as at Jul 31, 2020):
Friday's trading range has been $2.02 (2.65%), that's slightly above the last trading month's daily average range of $1.98. Weekly volatility is also higher, being above the market's average weekly trading range. The longer-term, monthly volatility is currently 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, one bearish candlestick pattern matches today's price action, the Hanging Man.
Crossing below the upper Bollinger Band, prices have lost at least some of their upward momentum in the short-term and could now be heading back down towards the mean of the Bollinger Bands at 69.35. The last time this happened on Tuesday, FBHS actually gained 5.06% on the following trading day.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Buying might accelerate should prices move above the close-by swing high at 78.25 where further buy stops could get activated.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Bullish Intraday Reversal" stand out. Its common bullish interpretation has been confirmed for Fortune Brands. Out of 408 times, FBHS closed higher 56.13% 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 58.82% with an average market move of 0.91%.