FLS closes below its opening price unable to hold early session gains
Flowserve Corporation (FLS) Technical Analysis Report for Dec 07, 2018 | by Techniquant Editorial Team
Moving lower for the 3rd day in a row, FLS finished the week -6.41% lower at 45.40 after losing $0.60 (-1.3%) today, but still notably outperforming the S&P 500 (-2.33%) following today's NFP report. Trading $0.68 higher after the open, Flowserve was unable to hold its gains as the bears took control ending the day below its opening price. The last time this happened on Monday, FLS lost -4.95% on the following trading day. Closing within the prior day's range, prices missed to decisively move beyond the previous day's trading range.
Daily Candlestick Chart (FLS as at Dec 07, 2018):
Friday's trading range has been $1.86 (4.02%), that's slightly below the last trading month's daily average range of $2.06. Things look different on the weekly timeframe, where the market's trading range of the last week has been above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for FLS.
After spiking up to 46.98 during the day, the share found resistance at the 200-day moving average at 46.39.
While still in a long-term uptrend, the short and medium-term trends both turned bearish already.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bearish Bounce off SMA 200" stand out. Although it is usually interpreted as bearish, it has actually shown to be bullish for Flowserve. Out of 9 times, FLS closed higher 55.56% 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 two trading days, showing a win rate of 55.56% with an average market move of 0.48%.