FND closes above its opening price after recovering from early selling pressure
Floor & Decor Holdings Inc. (FND) Technical Analysis Report for Jun 30, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, FND ended the month 10.87% higher at 57.65 after gaining $0.58 (1.02%) today on low volume, underperforming the S&P 500 (1.54%). Trading up to $0.79 lower after the open, the share managed to reverse during the session as bulls took control ending the day above its opening price. The last time this happened on June 25th, FND actually lost -2.75% on the following trading day. Closing above Monday's high at 57.53, the market confirmed its breakout through the previous session high after trading up to $0.49 above it intraday.
Daily Candlestick Chart (FND as at Jun 30, 2020):
Tuesday's trading range has been $1.91 (3.36%), that's slightly below the last trading month's daily average range of $2.28. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently lower than usual for FND.
Prices are trading close to the key technical resistance level at 58.85 (R1).
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Buying might accelerate should prices move above the nearby swing high at 58.71 where further buy stops could get triggered. With prices trading close to this year's high at 62.62, upside momentum might speed up should Floor & Decor be able to break out to new highs for the year. As prices are trading close to June's high at 58.85, upside momentum could accelerate should the stock mark new highs for the month.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "2 Consecutive Higher Closes" stand out. Its common bullish interpretation has been confirmed for Floor & Decor. Out of 98 times, FND closed higher 54.08% 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 62.24% with an average market move of 2.27%.