FIS breaks back below 50-day moving average
Fidelity National Information Services Inc. (FIS) Technical Analysis Report for Dec 07, 2018 | by Techniquant Editorial Team
Moving lower for the 3rd day in a row, FIS finished the week -3.08% lower at 104.62 after losing $1.17 (-1.11%) today, but still significantly outperforming the S&P 500 (-2.33%) following today's NFP report. Closing within the prior day's range, prices failed to decisively move beyond the previous day's trading range.
Daily Candlestick Chart (FIS as at Dec 07, 2018):
Friday's trading range has been $2.84 (2.69%), that's above the last trading month's daily average range of $2.19. Weekly volatility is also higher, being way above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for FIS.
Prices are trading close to the key technical support level at 103.20 (S1). The stock closed back below the 50-day moving average at 105.06 for the first time since November 27th. When this moving average was crossed below the last time on November 19th, FIS lost -1.81% on the following trading day.
Though the market is experiencing a short-term uptrend, this could just be a correction, as both the medium and long-term trends are still bearish.
Selling might accelerate should prices move below the nearby swing low at 102.67 where further sell stops could get triggered. Further selling might move prices lower should the market test November's close-by low at 101.75.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "3 Consecutive Lower Closes" stand out. Although it is usually interpreted as bearish, it has actually shown to be bullish for Fidelity National. Out of 120 times, FIS closed higher 55.83% 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 67.50% with an average market move of 1.36%.