FLS dominated by bulls lifting the market higher throughout the day
Flowserve Corporation (FLS) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team
FLS ended Wednesday at 29.54 surging $1.35 (4.79%) on high volume, strongly outperforming the S&P 500 (-0.46%). This is the biggest single-day gain in over two months. The last time we've seen such an unusually strong single-day gain on May 18th, FLS actually lost -4.41% on the following trading day. The bulls were in full control today, moving the market higher throughout the whole session. Closing above Tuesday's high at 28.70, the market confirmed its breakout through the previous session high after trading up to $1.08 above it intraday.
Daily Candlestick Chart (FLS as at Sep 16, 2020):
Wednesday's trading range has been $1.61 (5.66%), that's far above the last trading month's daily average range of $0.89. Weekly volatility is also higher, being slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for FLS.
One bullish candlestick pattern matches today's price action, the White Candle.
Flowserve managed to close back above the 100-day moving average at 28.45 for the first time since September 9th. After spiking up to 29.78 during the day, the stock found resistance at the 50-day moving average at 29.57.
Though the share is currently in a short-term downtrend, this might just be a correction, as both the medium and long-term trends are still bullish.
As prices are trading close to September's high at 30.49, upside momentum could accelerate should FLS mark new highs for the month.
Among the 12 market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bearish Bounce off SMA 50" stand out. While it is usually interpreted as bearish, it has actually shown to be bullish for Flowserve. Out of 29 times, FLS closed higher 62.07% 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 58.62% with an average market move of 0.35%.