FLIR breaks below Thursday's low
FLIR Systems Inc. (FLIR) Technical Analysis Report for Feb 14, 2020 | by Techniquant Editorial Team
FLIR ended the week 8.41% higher at 57.51 after losing $1.28 (-2.18%) today, strongly underperforming the S&P 500 (0.18%) ahead of tomorrow's Presidents' Day market holiday. The bears were in full control today, moving the market lower throughout the whole session. Closing below Thursday's low at 57.95, the share confirmed its breakout through the previous session low after trading up to $0.50 below it intraday.
Daily Candlestick Chart (FLIR as at Feb 14, 2020):
Friday's trading range has been $1.41 (2.4%), that's above the last trading month's daily average range of $1.17. Weekly volatility is also higher, being way above the market's average weekly trading range. The longer-term, monthly volatility is currently significantly higher than usual for FLIR.
Even with a strong opening FLIR Systems closed below the prior day's open and close, forming a bearish Engulfing Candle. The last time this candlestick pattern showed up on February 6th, FLIR lost -1.69% on the following trading day. Additionally, one bearish candlestick pattern matches today's price action, the Black Candle.
Crossing below the upper Bollinger Band, prices have lost at least some of their upward momentum in the short-term and could now be heading back down towards the mean of the Bollinger Bands at 54.39.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the Technical Indicators based market condition "Close crossed below the upper Bollinger Band" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for FLIR Systems. Out of 76 times, FLIR closed higher 51.32% 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 57.89% with an average market move of 0.37%.