FMC closes above its opening price after recovering from early selling pressure
FMC Corporation (FMC) Technical Analysis Report for Jul 31, 2020 | by Techniquant Editorial Team
FMC finished the month 6.45% higher at 106.05 after gaining $0.72 (0.68%) today, slightly underperforming the S&P 500 (0.77%). Trading up to $1.13 lower after the open, the share managed to reverse during the session as bulls took control ending the day above 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 (FMC as at Jul 31, 2020):
Friday's trading range has been $2.03 (1.93%), that's slightly below the last trading month's daily average range of $2.45. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for FMC.
Prices are trading close to the key technical resistance level at 106.38 (R1). After having been unable to move lower than 104.43 in the previous session, the market found buyers again around the same price level today at 104.14. The last time this happened on Wednesday, FMC actually lost -2.76% on the following trading day.
Although the stock is currently in a short-term downtrend, this could just be a correction, as both the medium and long-term trends are still bullish.
Buying might speed up should prices move above the close-by swing high at 108.58 where further buy stops could get activated. With prices trading close to this year's high at 108.77, upside momentum might accelerate should FMC be able to break out to new highs for the year.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Low close to prior low" stand out. Its common bullish interpretation has been confirmed for FMC. Out of 512 times, FMC closed higher 51.95% 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 55.86% with an average market move of 0.57%.