FMC pushes through Monday's high
FMC Corporation (FMC) Technical Analysis Report for Aug 04, 2020 | by Techniquant Editorial Team
FMC ended Tuesday at 107.54 gaining $1.80 (1.7%) on high volume, strongly outperforming the S&P 500 (0.36%). Closing above Monday's high at 107.12, the stock confirmed its breakout through the previous session high after trading up to $0.88 above it intraday.
Daily Candlestick Chart (FMC as at Aug 04, 2020):
Tuesday's trading range has been $3.41 (3.23%), that's above the last trading month's daily average range of $2.47. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for FMC.
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. Notwithstanding a weak opening the market managed to close above the prior day's open and close, forming a bullish Engulfing Candle. Additionally, one bullish candlestick pattern matches today's price action, the White Candle. The last time a White Candle showed up on July 29th, FMC actually lost -2.76% on the following trading day.
After trading as low as 104.59 during the day, the share found support at the 20-day moving average at 105.25.
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 close-by swing high at 108.58 where further buy stops could get triggered. 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. Further buying could move prices higher should the market test July's nearby high at 108.74.
Among the nine market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bullish Engulfing Candle" stand out. Its common bullish interpretation has been confirmed for FMC. Out of 55 times, FMC closed higher 61.82% 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 60.00% with an average market move of 1.32%.