FLS finds buyers around 24.85 for the third day in a row
Flowserve Corporation (FLS) Technical Analysis Report for May 22, 2020 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, FLS ended the week 12.3% higher at 25.20 after edging higher $0.04 (0.16%) today, slightly underperforming the S&P 500 (0.24%) ahead of tomorrow's Memorial Day market holiday. Closing within the prior day's range, prices missed to decisively move beyond the previous day's trading range in a lackluster session.
Daily Candlestick Chart (FLS as at May 22, 2020):
Friday's trading range has been $0.79 (3.08%), that's far below the last trading month's daily average range of $1.35. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for FLS. Prices continued to consolidate within a tight trading range between 23.69 and 25.64 where it has been caught now for the whole last trading week.
Two candlestick patterns are matching today's price action, the Bearish Short Candle and the Black Candle which are both known as bearish patterns.
Prices are trading close to the key technical resistance level at 25.21 (R1). The stock found buyers again today around 24.85 for the third trading day in a row after having found demand at 24.80 in the prior session and at 24.75 two days ago. The last time this happened on April 9th, FLS actually lost -3.94% on the following trading day.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Among the five 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 54.94% 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 55.56% with an average market move of 0.50%.