FMC closes above its opening price after recovering from early selling pressure
FMC Corporation (FMC) Technical Analysis Report for Jul 02, 2020 | by Techniquant Editorial Team
FMC ended Thursday at 101.14 gaining $1.78 (1.79%), notably outperforming the S&P 500 (0.45%) ahead of tomorrow's Independence Day OBS market holiday. Today's close at 101.14 marks the highest recorded closing price since June 10th. Trading up to $1.09 lower after the open, the market managed to reverse during the session as bulls took control ending the day above its opening price. The last time this happened on June 25th, FMC actually lost -2.56% on the following trading day. Ending the day with an indecisive close, neither buyers nor sellers were able to gain control during the session.
Daily Candlestick Chart (FMC as at Jul 02, 2020):
Thursday's trading range has been $2.02 (2.0%), that's below the last trading month's daily average range of $3.07. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for FMC.
Two candlestick patterns are matching today's price action, the Bullish Spinning Top which is known as bullish pattern and one bearish pattern, the Bearish Hikkake Pattern.
The share managed to close back above the 20-day moving average at 99.85 for the first time since June 23rd. Prices are trading close to the key technical resistance level at 102.09 (R1).
While still in a long-term downtrend, the short and medium-term trends both turned bullish already.
Further buying could move prices higher should the market test June's close-by high at 105.76.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bearish Hikkake Pattern" stand out. Its common bearish interpretation has been confirmed for FMC. Out of 133 times, FMC closed lower 58.65% 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 three trading days, showing a win rate of 51.13% with an average market move of -0.25%.