FLO dominated by bulls lifting the market higher throughout the day
Flowers Foods Inc. (FLO) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team
FLO ended Thursday at 19.58 surging $1.84 (10.37%) on high volume, notably outperforming the S&P 500 (6.24%). The bulls were in full control today, moving the market higher throughout the whole session. Closing above Wednesday's high at 19.51, Flowers Foods confirmed its breakout through the prior session high after trading up to $0.24 above it intraday.
Daily Candlestick Chart (FLO as at Mar 26, 2020):
Thursday's trading range has been $2.02 (11.38%), that's above the last trading month's daily average range of $1.61. 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 FLO.
One bullish candlestick pattern matches today's price action, the White Candle.
Unable to break through the key technical resistance level at 19.66 (R1), the share closed below it after spiking up to 19.75 earlier during the day. The failure to close above the resistance might increase that levels significance going forward. After having been unable to move above 19.51 in the previous session, the market ran into sellers again around the same price level today, failing to move higher than 19.75. The last time this happened on March 16th, FLO actually gained 14.10% on the following trading day.
Crossing above the lower Bollinger Band, prices have lost at least some of their downward momentum in the short-term and could now be heading back up towards the mean of the Bollinger Bands at 21.80.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Among the nine market conditions that our pattern recognition engine identified today, the statistics for the Technical Indicators based market condition "Close crossed above the lower Bollinger Band" stand out. Its common bullish interpretation has been confirmed for Flowers Foods. Out of 68 times, FLO closed higher 57.35% 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 55.88% with an average market move of 0.52%.