FND pushes through Thursday's high
Floor & Decor Holdings Inc. (FND) Technical Analysis Report for May 22, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, FND finished the week 12.04% higher at 49.79 after gaining $0.93 (1.9%) today, strongly outperforming the S&P 500 (0.24%) ahead of tomorrow's Memorial Day market holiday. Today's close at 49.79 marks the highest recorded closing price since March 6th. Closing above Thursday's high at 48.93, the share confirmed its breakout through the prior session high after trading up to $1.06 above it intraday.
Daily Candlestick Chart (FND as at May 22, 2020):
Friday's trading range has been $1.46 (2.99%), that's far below the last trading month's daily average range of $2.19. 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 FND.
Two candlestick patterns are matching today's price action, the Bullish Short Candle and the White Candle which are both known as bullish patterns.
After trading down to 48.53 earlier during the day, the stock bounced off the key technical support level at 48.83 (S1). The failure to close below the support might increase that levels importance as support going forward. When prices bounced off a significant support level the last time on May 12th, FND actually lost -4.27% on the following trading day.
With another close above the upper Bollinger Band, prices are confirming their strong upward momentum in the short-term. A drop back into the Bollinger Band on the next trading day while could signal a potential change in momentum that might lead to a correction back down towards the center of the Bollinger Bands at 43.63.
Though still in a long-term downtrend, the short and medium-term trends both turned bullish already.
Among the eight market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bullish Short Candle" stand out. Its common bullish interpretation has been confirmed for Floor & Decor. Out of 24 times, FND closed higher 58.33% 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 66.67% with an average market move of 3.34%.