FMC breaks below key technical support level
FMC Corporation (FMC) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team
FMC ended Wednesday at 110.67 losing $1.13 (-1.01%), underperforming the S&P 500 (-0.46%). The bears were in full control today, moving the market lower throughout the whole session. Closing below Tuesday's low at 110.80, the market confirmed its breakout through the previous session low after trading up to $0.23 below it intraday.
Daily Candlestick Chart (FMC as at Sep 16, 2020):
Wednesday's trading range has been $2.05 (1.82%), that's slightly below the last trading month's daily average range of $2.21. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly above 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 bearish Outside Bar. In spite of a strong opening the share closed below the prior day's open and close, forming a bearish Engulfing Candle. Additionally, one bearish candlestick pattern matches today's price action, the Black Candle. The last time a Black Candle showed up on September 4th, FMC lost -2.62% on the following trading day.
Prices broke below the key technical support level at 111.04 (now R1), which is likely to act as resistance going forward. After having been unable to move lower than 110.80 in the previous session, the stock found buyers again around the same price level today at 110.57.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Among the 11 market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Price broke through Technical Support S1" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for FMC. Out of 221 times, FMC closed higher 57.01% 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 59.28% with an average market move of 0.78%.