FLT finds buyers at key support level
FleetCor Technologies Inc. (FLT) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, FLT ended Thursday at 212.36 edging higher $0.03 (0.01%), significantly underperforming the S&P 500 (6.24%). Trading $22.02 higher after the open, the market was unable to hold its gains as the bears took control ending the day below its opening price. Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (FLT as at Mar 26, 2020):
Thursday's trading range has been $34.15 (15.77%), that's far above the last trading month's daily average range of $20.89. Weekly volatility is also higher, being way above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for FLT.
Two candlestick patterns are matching today's price action, the Bearish Spinning Top and the Shooting Star which are both known as bearish patterns.
After trading down to 204.45 earlier during the day, FleetCor Technologies bounced off the key technical support level at 210.15 (S1). The failure to close below the support could increase that levels significance as support going forward. When prices bounced off a significant support level the last time on Monday, FLT gained 10.90% on the following trading day. After spiking up to 238.60 during the day, the stock found resistance at the 20-day moving average at 226.00.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Shooting Star" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for FleetCor Technologies. Out of 51 times, FLT closed higher 54.90% 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 72.55% with an average market move of 1.97%.