FNB breaks back below 100-day moving average
F.N.B. Corporation (FNB) Technical Analysis Report for Jul 31, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, FNB finished the month -1.2% lower at 7.41 after losing $0.09 (-1.2%) today, significantly underperforming the S&P 500 (0.77%). 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 (FNB as at Jul 31, 2020):
Friday's trading range has been $0.26 (3.47%), that's below the last trading month's daily average range of $0.32. 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 FNB.
After trading down to 7.27 earlier during the day, F. N. B. bounced off the key technical support level at 7.30 (S1). The failure to close below the support might increase that levels importance as support going forward. The share closed back below the 100-day moving average at 7.42. When this moving average was crossed below the last time on Tuesday, FNB actually gained 4.18% on the following trading day. After having been unable to move lower than 7.22 in the prior session, the stock found buyers again around the same price level today at 7.27.
The market shows weakness in the short-term (in accordance with its long-term downtrend) with only the medium-term trend still being bullish.
Buying could accelerate should prices move above the nearby swing high at 7.73 where further buy stops might get triggered. Selling could speed up should prices move below the close-by swing low at 7.22 where further sell stops might get activated.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bearish Break through SMA 100" stand out. While it is usually interpreted as bearish, it has actually shown to be bullish for F. N. B.. Out of 91 times, FNB closed higher 58.24% 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 58.24% with an average market move of 1.13%.