FMC breaks below key technical support level
FMC Corporation (FMC) Technical Analysis Report for Sep 18, 2020 | by Techniquant Editorial Team
FMC ended the week 1.84% higher at 110.56 after losing $2.29 (-2.03%) today on high volume, underperforming the S&P 500 (-1.12%). 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 Sep 18, 2020):
Friday's trading range has been $3.83 (3.4%), that's far above the last trading month's daily average range of $2.49. 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.
One bearish candlestick pattern matches today's price action, the Black Candle.
Prices are trading close to the key technical support level at 108.41 (S1). 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 above 113.29 in the previous session, the stock ran into sellers again around the same price level today, failing to move higher than 113.73. The last time this happened on Wednesday, FMC actually gained 1.97% on the following trading day.
Crossing below the upper Bollinger Band, prices have lost at least some of their upward momentum in the short-term and could now be heading back down towards the mean of the Bollinger Bands at 109.27.
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 108.71 where further sell stops could get triggered.
Among the eight 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. Although it is usually interpreted as bearish, it has actually shown to be bullish for FMC. Out of 222 times, FMC closed higher 57.21% 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 59.01% with an average market move of 0.78%.