FMC dominated by bears dragging the market lower throughout the day
FMC Corporation (FMC) Technical Analysis Report for Aug 03, 2020 | by Techniquant Editorial Team
FMC ended Monday at 105.74 edging lower $0.31 (-0.29%), strongly underperforming the S&P 500 (0.72%). The bears were in full control today, moving the market lower throughout the whole session. Closing within the prior day's range, prices failed to decisively move beyond the previous day's trading range in a lackluster session.
Daily Candlestick Chart (FMC as at Aug 03, 2020):
Monday's trading range has been $1.41 (1.32%), that's far below the last trading month's daily average range of $2.40. 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.
Two candlestick patterns are matching today's price action, the Bearish Short Candle and the Black Candle which are both known as bearish patterns. The last time a Bearish Short Candle showed up on June 23rd, FMC lost -4.40% on the following trading day.
Prices are trading close to the key technical resistance level at 106.38 (R1).
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Selling might speed up should prices move below the close-by swing low at 104.15 where further sell 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. Further buying could move prices higher should the market test July's nearby high at 108.74.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Decisive Down Move" stand out. Although it is usually interpreted as bearish, it has actually shown to be bullish for FMC. Out of 310 times, FMC closed higher 53.55% 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 58.71% with an average market move of 0.88%.