FLS dominated by bulls lifting the market higher throughout the day
Flowserve Corporation (FLS) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, FLS finished Thursday at 23.94 gaining $0.94 (4.09%), significantly underperforming the S&P 500 (6.24%). The bulls were in full control today, moving the market higher throughout the whole session. Closing within the previous day's range, prices missed to decisively move beyond the prior day's trading range in a lackluster session.
Daily Candlestick Chart (FLS as at Mar 26, 2020):
Thursday's trading range has been $1.47 (6.46%), that's below the last trading month's daily average range of $2.34. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently higher than usual for FLS.
During the whole day, prices traded within the previous day's range, unable to trade above the prior day's high or below the previous day's low forming an Inside Bar. Additionally, two candlestick patterns are matching today's price action, the Bullish Short Candle and the White Candle which are both known as bullish patterns. The last time a White Candle showed up on Tuesday, FLS gained 7.78% on the following trading day.
Prices are trading close to the key technical support level at 22.20 (S1). After having been unable to move above 24.18 in the prior session, the share ran into sellers again around the same price level today, missing to move higher than 24.09.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Buying might speed up should prices move above the nearby swing high at 24.18 where further buy stops could get triggered.
Among the eight market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "3 Consecutive Higher Closes" stand out. Its common bullish interpretation has been confirmed for Flowserve. Out of 162 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 10 trading days, showing a win rate of 54.94% with an average market move of 0.31%.