FLR misses to close above 20-day moving average
Fluor Corporation (FLR) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team
FLR finished Wednesday at 9.25 gaining $0.41 (4.64%), significantly outperforming the S&P 500 (-0.46%) ahead of Thursday's earnings report. Closing within the prior day's range, prices missed to decisively move beyond the previous day's trading range.
Daily Candlestick Chart (FLR as at Sep 16, 2020):
FLR is set to report earnings on Thursday. For the upcoming report, analysts expect the company to have earned $0.24 per share. The company's last earnings report was released on Oct. 31, 2019, when Fluor Corporation reported earnings of $0.71 per share beating market expectations by 86.8%.
Wednesday's trading range has been $0.75 (8.46%), that's above the last trading month's daily average range of $0.59. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for FLR. Prices continued to consolidate within a tight trading range between 8.61 and 9.59 where it has been caught now for the whole last trading week.
One bullish candlestick pattern matches today's price action, the White Candle.
After spiking up to 9.59 during the day, the stock found resistance at the 20-day moving average at 9.35. After having been unable to move lower than 8.75 in the prior session, the market found buyers again around the same price level today at 8.84. The last time this happened on September 4th, FLR actually lost -7.65% on the following trading day.
Though still in a long-term uptrend, the short and medium-term trends both turned bearish already.
Selling could speed up should prices move below the nearby swing low at 8.75 where further sell stops might get triggered.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the Stock Earning Report based market condition "Trading Day before Earnings Report" stand out. While it is usually interpreted as neutral, it has actually shown to be bearish for Fluor. Out of 30 times, FLR closed lower 63.33% 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 60.00% with an average market move of -3.59%.