FBHS fails to close above 20-day moving average

Fortune Brands Home & Security (FBHS) Technical Analysis Report for Apr 16, 2018

Highlights

FBHS closes above its opening price after recovering from early selling pressure
FBHS unable to break through key resistance level
FBHS fails to close above 20-day moving average
FBHS runs into sellers again around 59.36
FBHS rises to highest close since April 5th

TQ Sentiment

Report Sentiment: 25% Bearish
Technical Forecast:

Overview

FBHS ended Monday at 58.92 gaining $0.57 (0.98%). Today's closing price of 58.92 marks the highest close since April 5th. Trading up to $0.37 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. Ending the day with an indecisive close, neither buyers nor sellers were able to gain control during the session.

Daily chart for FBHS

Volatility

Monday's trading range was $1.02 (1.74%), that's slightly below last trading month's daily average range of $1.24. Things look different on a weekly scale, where volatility is below the markets average with the monthly volatility being slightly below average. Prices continued to consolidate within a tight trading range between 58.15 and 59.44 which it has been in now for the last trading week.

Price Action

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. After moving lower in the prior session, the share managed to close higher but below the previous day's open, forming a bullish Harami Candle.

Support/Resistance

Unable to break through the key technical resistance level at 59.28, the market closed below it after spiking as high as 59.36 during the day. The failure to close above the resistance could increase that levels importance as resistance going forward. After having been unable to move above 59.44 in the prior session, Fortune Brands ran into sellers again around the same price level today, failing to move higher than 59.36. After spiking up to 59.36 during the day, FBHS found resistance at the 20-day moving average at 58.96.

Trend

While the stock is experiencing a short-term up trend, this might just be a correction, as both the medium and long term trends are still in negative territory.

Order Flow

Buying could accelerate should prices move above the nearby swing high at 59.44 where further buy stops might get activated. Selling could speed up should prices move below the close-by swing low at 58.15 where further sell stops might get triggered. With prices trading close to this year's low at 56.59, downside momentum could accelerate should the share break out to new lows for the year. As prices are trading close to April's high at 60.34, upside momentum might speed up should the market mark new highs for the month.

Conclusion

While classical technical analysis indicates a neutral sentiment for the next trading day, our quantitative statistics show a different picture being bearish.

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