FDS unable to break through key resistance level
FactSet Research Systems Inc. (FDS) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team
FDS ended Wednesday at 334.12 losing $2.21 (-0.66%), slightly underperforming the S&P 500 (-0.46%). Trading $5.13 higher after the open, the stock was unable to hold its gains as the bears took control ending the day below its opening price. Closing below Tuesday's low at 334.34, FactSet Research confirmed its breakout through the prior session low after trading up to $0.86 below it intraday.
Daily Candlestick Chart (FDS as at Sep 16, 2020):
Wednesday's trading range has been $8.81 (2.61%), that's slightly above the last trading month's daily average range of $7.03. Weekly volatility is also higher, being slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently higher than usual for FDS.
In a volatile session, prices traded above the previous day's high as well as below the prior day's low, forming a bearish Outside Bar. In spite of a strong opening the market closed below the previous day's open and close, forming a bearish Engulfing Candle.
Unable to break through the key technical resistance level at 339.65 (R1), the share closed below it after spiking up to 342.29 earlier during the day. The failure to close above the resistance could increase that levels importance going forward. After having been unable to move lower than 334.34 in the prior session, FDS found buyers again around the same price level today at 333.48. The last time this happened on September 1st, FDS gained 0.85% on the following trading day.
Though still in a long-term uptrend, the short and medium-term trends both turned bearish already.
Among the eight market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Close near low of period" stand out. Although it is usually interpreted as bearish, it has actually shown to be bullish for FactSet Research. Out of 462 times, FDS closed higher 60.17% 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 63.20% with an average market move of 1.07%.