FMC dominated by bulls lifting the market higher throughout the day
FMC Corporation (FMC) Technical Analysis Report for May 22, 2020 | by Techniquant Editorial Team
FMC finished the week 6.0% higher at 93.30 after gaining $1.43 (1.56%) today on low volume, significantly outperforming the S&P 500 (0.24%) ahead of tomorrow's Memorial Day market holiday. The bulls were in full control today, moving the market higher throughout the whole session. Closing above Thursday's high at 93.24, the stock confirmed its breakout through the previous session high after trading up to $0.15 above it intraday.
Daily Candlestick Chart (FMC as at May 22, 2020):
Friday's trading range has been $2.22 (2.43%), that's below the last trading month's daily average range of $2.82. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently lower than usual for FMC. Prices continued to consolidate within a tight trading range between 89.11 and 93.64 where it has been caught now for the whole last trading week.
In a volatile session, prices traded above the prior day's high as well as below the previous day's low, forming a bullish Outside Bar. The last time this happened on May 6th, FMC gained 2.32% on the following trading day. Additionally, two candlestick patterns are matching today's price action, the White Candle which is known as bullish pattern and one bearish pattern, the Last Engulfing Top Pattern.
The market ran into sellers again today around 93.39 for the third trading day in a row after having found sellers at 93.24 in the prior session and at 93.64 two days ago.
The share shows weakness in the short-term (in accordance with its long-term downtrend) with only the medium-term trend still being bullish.
Buying might accelerate should prices move above the nearby swing high at 93.64 where further buy stops could get triggered. Trading close to March's high at 99.41 we might see further upside momentum if potential buy stops at the level get activated.
Among the 11 market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "High close to previous High" stand out. While it is usually interpreted as bearish, it has actually shown to be bullish for FMC. Out of 593 times, FMC closed higher 52.28% 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 56.83% with an average market move of 0.85%.