FIS closes above its opening price after recovering from early selling pressure
Fidelity National Information Services Inc. (FIS) Technical Analysis Report for May 29, 2020 | by Techniquant Editorial Team
Moving higher for the 4th day in a row, FIS ended the month 5.26% higher at 138.83 after gaining $0.46 (0.33%) today on low volume, slightly underperforming the S&P 500 (0.48%). Today's close at 138.83 marks the highest recorded closing price since March 10th. Trading up to $2.10 lower after the open, Fidelity National managed to reverse during the session as bulls took control ending the day above its opening price. Closing within the previous day's range, prices missed to decisively move beyond the prior day's trading range in a lackluster session.
Daily Candlestick Chart (FIS as at May 29, 2020):
Friday's trading range has been $2.90 (2.09%), that's below the last trading month's daily average range of $3.68. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for FIS.
Two candlestick patterns are matching today's price action, the Bullish Spinning Top which is known as bullish pattern and one bearish pattern, the Hanging Man. The last time a Bullish Spinning Top showed up on May 20th, FIS actually lost -1.17% on the following trading day.
Although still in a long-term downtrend, the short and medium-term trends both turned bullish already.
Buying might speed up should prices move above the nearby swing high at 140.30 where further buy stops could get activated. Selling might accelerate should prices move below the close-by swing low at 134.68 where further sell stops could get triggered.
Among the eight market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Close to Swing Low" stand out. While it is usually interpreted as neutral, it has actually shown to be bullish for Fidelity National. Out of 661 times, FIS closed higher 54.16% 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 59.91% with an average market move of 0.76%.