FISV closes above its opening price after recovering from early selling pressure
Fiserv Inc. (FISV) Technical Analysis Report for May 22, 2020 | by Techniquant Editorial Team
FISV finished the week 3.91% higher at 103.93 after edging higher $0.35 (0.34%) today on low volume, slightly underperforming the Nasdaq 100 (0.38%) ahead of tomorrow's Memorial Day market holiday. Trading up to $0.63 lower after the open, the share managed to reverse during the session as bulls took control ending the day above its opening price. The last time this happened on May 15th, FISV gained 5.03% on the following trading day. Closing within the prior day's range, prices failed to decisively move beyond the previous day's trading range in a lackluster session.
Daily Candlestick Chart (FISV as at May 22, 2020):
Friday's trading range has been $1.56 (1.51%), that's far below the last trading month's daily average range of $3.04. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently lower than usual for FISV. Prices continued to consolidate within a tight trading range between 101.80 and 106.51 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.
Prices are trading close to the key technical resistance level at 105.58 (R1). Fiserv found buyers again today around 102.93 for the third trading day in a row after having found demand at 103.07 in the prior session and at 103.44 two days ago.
The stock shows weakness in the short-term (in accordance with its long-term downtrend) with only the medium-term trend still being bullish.
Buying could accelerate should prices move above the nearby swing high at 106.51 where further buy stops might get activated. As prices are trading close to May's high at 108.83, upside momentum could speed up should the market mark new highs for the month.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Low close to previous low" stand out. Its common bullish interpretation has been confirmed for Fiserv. Out of 594 times, FISV closed higher 58.92% 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 64.81% with an average market move of 1.16%.