FOSL finds buyers around 6.29 for the third day in a row
Fossil Group Inc. (FOSL) Technical Analysis Report for Feb 14, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, FOSL ended the week -3.9% lower at 6.40 after losing $0.18 (-2.74%) today, significantly underperforming the S&P 500 (0.18%) ahead of tomorrow's Presidents' Day market holiday. 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 (FOSL as at Feb 14, 2020):
Friday's trading range has been $0.29 (4.41%), that's below the last trading month's daily average range of $0.39. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for FOSL.
One bearish candlestick pattern matches today's price action, the Black Candle.
Prices broke below the key technical support level at 6.55 (now R1), which is likely to act as resistance going forward. The market found buyers again today around 6.29 for the third trading day in a row after having found demand at 6.34 in the prior session and at 6.36 two days ago. The last time this happened on December 31, 2019, FOSL gained 1.02% on the following trading day.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Low close to previous two Lows" stand out. Its common bullish interpretation has been confirmed for Fossil Group. Out of 124 times, FOSL closed higher 54.03% 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 two trading days, showing a win rate of 54.84% with an average market move of 0.59%.