FHN slumps, losing $0.49 (-2.94%) within a single day
First Horizon National Corporation (FHN) Technical Analysis Report for Feb 14, 2020 | by Techniquant Editorial Team
FHN finished the week -1.76% lower at 16.16 after tanking $0.49 (-2.94%) today, significantly underperforming the S&P 500 (0.18%) ahead of tomorrow's Presidents' Day market holiday. This is the biggest single-day loss in over four months. The bears were in full control today, moving the market lower throughout the whole session. Closing below Thursday's low at 16.50, the market confirmed its breakout through the previous session low after trading up to $0.36 below it intraday.
Daily Candlestick Chart (FHN as at Feb 14, 2020):
Friday's trading range has been $0.53 (3.19%), that's far above the last trading month's daily average range of $0.31. Things look different on the weekly timeframe, where the market's trading range of the last week has been below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for FHN.
One bearish candlestick pattern matches today's price action, the Black Candle.
Prices are trading close to the key technical support level at 16.12 (S1). The stock closed back below the 100-day moving average at 16.30 for the first time since February 4th. When this moving average was crossed below the last time on January 30th, FHN lost -1.72% on the following trading day.
While still in a long-term downtrend, the short and medium-term trends both turned bullish already.
With prices trading close to this year's low at 15.86, downside momentum might accelerate should First Horizon break out to new lows for the year. As prices are trading close to February's low at 16.11, downside momentum could speed up should the share mark new lows for the month.
Among the 12 market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Strong Down Move" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for First Horizon. Out of 202 times, FHN closed higher 57.43% 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 59.90% with an average market move of 0.87%.