FNF finds support at 200-day moving average
FNF Group of Fidelity National Financial Inc. (FNF) Technical Analysis Report for Feb 14, 2020 | by Techniquant Editorial Team
FNF finished the week -1.96% lower at 45.08 after losing $0.12 (-0.27%) today on high volume, slightly underperforming the S&P 500 (0.18%) following Thursday's earnings report. Closing within the previous day's range, prices missed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (FNF as at Feb 14, 2020):
FNF reported earnings of $0.95 per share after Thursday's market close. With analysts having expected an EPS of $0.81, FNF Group of Fidelity National Financial Inc. beat market expectations by 17.3%. The company's last earnings report was released on Oct. 29, 2019, when FNF Group of Fidelity National Financial Inc. reported earnings of $1.1 per share topping market expectations by 23.6%.
Friday's trading range has been $2.08 (4.56%), that's far above the last trading month's daily average range of $0.82. Weekly volatility is also higher, being above the market's average weekly trading range. The longer-term, monthly volatility is currently significantly higher than usual for FNF.
In a volatile session, prices traded above the previous day's high as well as below the prior day's low, forming a bearish Outside Bar. Additionally, one bullish candlestick pattern matches today's price action, the Hammer.
After trading as low as 43.65 during the day, the market found support at the 200-day moving average at 43.98. The last time this happened on September 28, 2018, FNF actually lost -1.78% on the following trading day. Prices are trading close to the key technical resistance level at 45.24 (R1).
While still in a long-term uptrend, the short and medium-term trends both turned bearish already.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the Stock Earning Report based market condition "Trading Day post strong Earnings Report" stand out. Though it is usually interpreted as neutral, it has actually shown to be bullish for FNF Group. Out of 21 times, FNF closed higher 76.19% 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 1.59%.