FLS fails to close above 20-day moving average
Flowserve Corporation (FLS) Technical Analysis Report for Jun 30, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, FLS finished the month 9.27% higher at 28.52 after edging higher $0.29 (1.03%) today, underperforming the S&P 500 (1.54%). The bulls were in full control today, moving the market higher throughout the whole session. Closing above Monday's high at 28.37, the market confirmed its breakout through the previous session high after trading up to $0.47 above it intraday.
Daily Candlestick Chart (FLS as at Jun 30, 2020):
Tuesday's trading range has been $1.04 (3.74%), that's below the last trading month's daily average range of $1.38. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for FLS.
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 Bullish Short Candle showed up on March 26th, FLS actually lost -9.40% on the following trading day.
After spiking up to 28.84 during the day, the share found resistance at the 20-day moving average at 28.77.
Flowserve shows weakness in the short-term (in accordance with its long-term downtrend) with only the medium-term trend still being bullish.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "2 Consecutive Higher Closes" stand out. Its common bullish interpretation has been confirmed for Flowserve. Out of 305 times, FLS closed higher 53.77% 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 56.39% with an average market move of 0.55%.