FCAU dominated by bears dragging the market lower throughout the day
Fiat Chrysler Automobiles N.V. (FCAU) Technical Analysis Report for Feb 14, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, FCAU finished the week 0.61% higher at 13.27 after losing $0.17 (-1.26%) today on low volume, strongly underperforming the S&P 500 (0.18%) ahead of tomorrow's Presidents' Day market holiday. The bears were in full control today, moving the market lower throughout the whole session. Ending with a weak close near the low of the day sets a bearish note for the next session.
Daily Candlestick Chart (FCAU as at Feb 14, 2020):
Friday's trading range has been $0.17 (1.27%), that's slightly below the last trading month's daily average range of $0.19. 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 lower than usual for FCAU.
One bearish candlestick pattern matches today's price action, the Black Candle. The last time a Black Candle showed up on February 6th, FCAU lost -3.58% on the following trading day.
The share closed back below the 20-day moving average at 13.34.
While the stock is experiencing a short-term uptrend, this might just be a correction, as both the medium and long-term trends are still bearish.
Selling could speed up should prices move below the nearby swing low at 13.03 where further sell stops might get activated. With prices trading close to this year's low at 12.87, downside momentum could accelerate should Fiat Chrysler break out to new lows for the year.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Decisive Down Move" stand out. Although it is usually interpreted as bearish, it has actually shown to be bullish for Fiat Chrysler. Out of 273 times, FCAU closed higher 55.31% 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 53.48% with an average market move of 1.89%.