FISV finds buyers at key support level
Fiserv Inc. (FISV) Technical Analysis Report for Jul 31, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, FISV ended the month 2.22% higher at 99.79 after losing $0.66 (-0.66%) today, notably underperforming the Nasdaq 100 (1.78%). Closing within the prior day's range, prices missed to decisively move beyond the previous day's trading range in a lackluster session.
Daily Candlestick Chart (FISV as at Jul 31, 2020):
Friday's trading range has been $1.61 (1.6%), that's below the last trading month's daily average range of $2.40. 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 FISV. Prices continued to consolidate within a tight trading range between 98.84 and 101.71 where it has been caught now for the whole last trading week.
During the whole day, prices traded within the prior day's range, unable to trade above the previous day's high or below the prior day's low forming an Inside Bar.
After trading down to 98.86 earlier during the day, the market bounced off the key technical support level at 99.21 (S1). The failure to close below the support might increase that levels significance as support going forward. Prices are trading close to the key technical resistance level at 101.35 (R1). After having been unable to move lower than 98.84 in the previous session, the share found buyers again around the same price level today at 98.86. The last time this happened on Tuesday, FISV gained 1.47% on the following trading day.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Buying could speed up should prices move above the close-by swing high at 101.71 where further buy stops might get activated. Selling could accelerate should prices move below the nearby swing low at 98.84 where further sell stops might get triggered.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "2 Consecutive Lower Closes" stand out. Although it is usually interpreted as bearish, it has actually shown to be bullish for Fiserv. Out of 265 times, FISV closed higher 61.51% 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 64.53% with an average market move of 1.28%.