FMC still stuck within tight trading range
FMC Corporation (FMC) Technical Analysis Report for Feb 14, 2020 | by Techniquant Editorial Team
FMC finished the week 0.31% higher at 105.47 after edging higher $0.04 (0.04%) today, slightly underperforming the S&P 500 (0.18%) ahead of tomorrow's Presidents' Day market holiday. Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (FMC as at Feb 14, 2020):
Friday's trading range has been $2.10 (1.99%), that's slightly below the last trading month's daily average range of $2.10. Weekly volatility is also lower, being way below the market's average weekly trading range. The longer-term, monthly volatility is currently significantly higher than usual for FMC. Prices continued to consolidate within a tight trading range between 104.01 and 106.99 where it has been caught now for the whole last trading week.
Three candlestick patterns are matching today's price action, the Gravestone Doji and the Northern Doji which are both known as bearish patterns and one neutral pattern, the Doji. The last time a Gravestone Doji showed up on Tuesday, FMC actually gained 1.13% on the following trading day.
Prices are trading close to the key technical resistance level at 106.99 (R1).
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Buying could accelerate should prices move above the close-by swing high at 106.99 where further buy stops might get activated. Selling could speed up should prices move below the nearby swing low at 104.01 where further sell stops might get triggered.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Gravestone Doji" stand out. Its common bearish interpretation has been confirmed for FMC. Out of 23 times, FMC closed lower 73.91% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the short side has been after 10 trading days, showing a win rate of 60.87% with an average market move of -0.90%.