FHB closes higher for the 2nd day in a row
First Hawaiian Inc. (FHB) Technical Analysis Report for Feb 14, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, FHB ended the week -0.27% lower at 29.62 after gaining $0.03 (0.1%) today, slightly underperforming the S&P 500 (0.18%) ahead of tomorrow's Presidents' Day market holiday. Closing above Thursday's high at 29.61, First Hawaiian confirmed its breakout through the prior session high after trading up to $0.33 above it intraday.
Daily Candlestick Chart (FHB as at Feb 14, 2020):
Friday's trading range has been $0.47 (1.59%), that's slightly below the last trading month's daily average range of $0.51. Weekly volatility is also lower, being way below the market's average weekly trading range. The longer-term, monthly volatility is currently notably higher than usual for FHB. Prices continued to consolidate within a tight trading range between 29.16 and 29.94 where it has been caught now for the whole last trading week.
One bullish candlestick pattern matches today's price action, the Bullish Spinning Top.
Unable to break through the key technical resistance level at 29.65 (R1), the market closed below it after spiking up to 29.94 earlier during the day. The failure to close above the resistance might increase that levels significance going forward. When prices bounced off a significant resistance level the last time on January 31st, FHB actually gained 2.48% on the following trading day.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Selling could accelerate should prices move below the nearby swing low at 29.16 where further sell stops might get activated.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bounced off Technical Resistance R1" stand out. Its common bearish interpretation has been confirmed for First Hawaiian. Out of 342 times, FHB closed lower 52.34% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the short side has been after 10 trading days, showing a win rate of 62.87% with an average market move of -0.75%.