FOSL unable to break through key resistance level
Fossil Group Inc. (FOSL) Technical Analysis Report for May 22, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, FOSL finished the week 12.15% higher at 3.23 after gaining $0.32 (11.0%) today, significantly outperforming the S&P 500 (0.24%) ahead of tomorrow's Memorial Day market holiday. The bulls were in full control today, moving the market higher throughout the whole session. Closing above Thursday's high at 2.98, Fossil Group confirmed its breakout through the previous session high after trading up to $0.27 above it intraday.
Daily Candlestick Chart (FOSL as at May 22, 2020):
Friday's trading range has been $0.34 (11.53%), that's slightly above the last trading month's daily average range of $0.31. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for FOSL.
Two candlestick patterns are matching today's price action, the White Candle which is known as bullish pattern and one bearish pattern, the Bearish Hikkake Pattern.
Unable to break through the key technical resistance level at 3.24 (R1), the market closed below it after spiking up to 3.25 earlier during the day. The failure to close above the resistance might increase that levels importance going forward. When prices bounced off a significant resistance level the last time on Monday, FOSL lost -7.72% on the following trading day.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Buying could accelerate should prices move above the nearby swing high at 3.31 where further buy stops might get activated.
Among the 10 market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bounced off Technical Resistance R1" stand out. Its common bearish interpretation has been confirmed for Fossil Group. Out of 386 times, FOSL closed lower 60.10% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the short side has been after eight trading days, showing a win rate of 51.30% with an average market move of 0.25%.