FMC runs into sellers again around 108.53
FMC Corporation (FMC) Technical Analysis Report for Jul 28, 2020 | by Techniquant Editorial Team
FMC finished Tuesday at 106.45 losing $2.00 (-1.84%) on low volume, significantly underperforming the S&P 500 (-0.65%). Closing below Monday's low at 107.29, the stock confirmed its breakout through the prior session low after trading up to $0.91 below it intraday.
Daily Candlestick Chart (FMC as at Jul 28, 2020):
Tuesday's trading range has been $2.15 (1.99%), that's slightly below the last trading month's daily average range of $2.54. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for FMC.
One bearish candlestick pattern matches today's price action, the Black Candle. The last time a Black Candle showed up on July 9th, FMC actually gained 2.35% on the following trading day.
After having been unable to move above 108.64 in the previous session, the market ran into sellers again around the same price level today, missing to move higher than 108.53.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Buying might speed up should prices move above the nearby swing high at 108.64 where further buy stops could get activated. With prices trading close to this year's high at 108.77, upside momentum might accelerate should the share be able to break out to new highs for the year.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Closed below last periods low" stand out. Although it is usually interpreted as bearish, it has actually shown to be bullish for FMC. Out of 384 times, FMC closed higher 52.08% 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 59.90% with an average market move of 0.87%.