FLR runs into sellers around 20.02 for the third day in a row
Fluor Corporation (FLR) Technical Analysis Report for Feb 14, 2020 | by Techniquant Editorial Team
FLR ended the week 8.25% higher at 19.54 after losing $0.43 (-2.15%) today on high volume, significantly underperforming the S&P 500 (0.18%) ahead of tomorrow's Presidents' Day market holiday. Closing below Thursday's low at 19.56, the share confirmed its breakout through the prior session low after trading up to $0.43 below it intraday.
Daily Candlestick Chart (FLR as at Feb 14, 2020):
Friday's trading range has been $0.89 (4.45%), that's far above the last trading month's daily average range of $0.67. Weekly volatility is also higher, being above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for FLR.
In spite of a strong opening the stock closed below the previous day's open and close, forming a bearish Engulfing Candle. The last time this candlestick pattern showed up on February 6th, FLR lost -4.24% on the following trading day. Additionally, two candlestick patterns are matching today's price action, the Bullish Hikkake Pattern which is known as bullish pattern and one bearish pattern, the Black Candle.
After trading as low as 19.13 during the day, the market found support at the 20-day moving average at 19.14. Prices broke below the key technical support level at 19.92 (now R1), which is likely to act as resistance going forward. Fluor ran into sellers again today around 20.02 for the third trading day in a row after having found sellers at 20.08 in the prior session and at 20.15 two days ago.
While still in a long-term downtrend, the short and medium-term trends both turned bullish already.
Buying might accelerate should prices move above the close-by swing high at 20.15 where further buy stops could get activated. With prices trading close to this year's high at 20.90, upside momentum might speed up should FLR be able to break out to new highs for the year.
Among the nine market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bullish Bounce off SMA 20" stand out. Although it is usually interpreted as bullish, it has actually shown to be bearish for Fluor. Out of 50 times, FLR closed lower 56.00% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the short side has been after 10 trading days, showing a win rate of 54.00% with an average market move of -0.38%.