FMX closes lower for the 2nd day in a row
Fomento Economico Mexicano S.A.B. de C.V. (FMX) Technical Analysis Report for Jul 31, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, FMX finished the month -0.81% lower at 61.51 after losing $0.60 (-0.97%) today on high volume, strongly underperforming the S&P 500 (0.77%). Closing within the previous day's range, prices missed to decisively move beyond the prior day's trading range in a lackluster session.
Daily Candlestick Chart (FMX as at Jul 31, 2020):
Friday's trading range has been $0.96 (1.55%), that's below the last trading month's daily average range of $1.38. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for FMX. Prices continued to consolidate within a tight trading range between 61.00 and 62.48 where it has been caught now for the last three trading days.
After trading down to 61.00 earlier during the day, the stock bounced off the key technical support level at 61.19 (S1). The failure to close below the support could increase that levels significance as support going forward. When prices bounced off a significant support level the last time on Tuesday, FMX gained 1.66% on the following trading day.
While the share is experiencing a short-term uptrend, this might just be a correction, as both the medium and long-term trends are still bearish.
Buying could accelerate should prices move above the close-by swing high at 62.48 where further buy stops might get activated. As prices are trading close to July's high at 63.93, upside momentum could speed up should the market mark new highs for the month.
Among the three market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "2 Consecutive Lower Closes" stand out. Its common bearish interpretation has been confirmed for Fomento Economico. Out of 320 times, FMX closed lower 54.69% of the time on the next trading day after the market condition occurred.