FBHS closes above its opening price after recovering from early selling pressure
Fortune Brands Home & Security Inc. (FBHS) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team
Moving higher for the 4th day in a row, FBHS ended Wednesday at 85.21 gaining $1.13 (1.34%) on high volume, significantly outperforming the S&P 500 (-0.46%). Trading up to $1.06 lower after the open, the share 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 missed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (FBHS as at Sep 16, 2020):
Wednesday's trading range has been $2.54 (2.99%), that's above the last trading month's daily average range of $2.05. Weekly volatility is also higher, being slightly above 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 High-Wave Candle and the Bullish Spinning Top which are both known as bullish patterns. The last time a Bullish Spinning Top showed up on August 20th, FBHS gained 2.49% on the following trading day.
After having been unable to move lower than 83.77 in the previous session, the stock found buyers again around the same price level today at 83.88.
Although Fortune Brands is currently in a short-term downtrend, this could just be a correction, as both the medium and long-term trends are still bullish.
With prices trading close to this year's high at 86.80, upside momentum might speed up should the market be able to break out to new highs for the year.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bullish Spinning Top" stand out. Its common bullish interpretation has been confirmed for Fortune Brands. Out of 195 times, FBHS closed higher 56.41% 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 60.51% with an average market move of 1.62%.