FHN finds buyers again around 9.10
First Horizon National Corporation (FHN) Technical Analysis Report for Jul 31, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, FHN finished the month -6.93% lower at 9.27 after losing $0.09 (-0.96%) today on low volume, significantly underperforming the S&P 500 (0.77%). Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range in a lackluster session.
Daily Candlestick Chart (FHN as at Jul 31, 2020):
Friday's trading range has been $0.24 (2.58%), that's far below the last trading month's daily average range of $0.41. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for FHN.
One bullish candlestick pattern matches today's price action, the Takuri Line. The last time a Takuri Line showed up on March 13th, FHN actually lost -16.30% on the following trading day.
Prices are trading close to the key technical resistance level at 9.57 (R1). After having been unable to move lower than 9.13 in the previous session, First Horizon found buyers again around the same price level today at 9.10.
Although still in a long-term downtrend, the short and medium-term trends both turned bullish already.
Buying could accelerate should prices move above the nearby swing high at 9.69 where further buy stops might get activated. Selling could speed up should prices move below the close-by swing low at 8.96 where further sell stops might get triggered.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Takuri Line" stand out. While it is usually interpreted as bullish, it has actually shown to be bearish for First Horizon. Out of 60 times, FHN closed lower 55.00% 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 51.67% with an average market move of -2.02%.