FOSL dominated by bears dragging the market lower throughout the day
Fossil Group Inc. (FOSL) Technical Analysis Report for May 29, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, FOSL ended the month -22.98% lower at 3.05 after losing $0.15 (-4.69%) today on high volume, notably underperforming the S&P 500 (0.48%). The bears were in full control today, moving the market lower throughout the whole session. Closing below Thursday's low at 3.08, the stock confirmed its breakout through the previous session low after trading up to $0.06 below it intraday.
Daily Candlestick Chart (FOSL as at May 29, 2020):
Friday's trading range has been $0.13 (4.13%), that's far below the last trading month's daily average range of $0.30. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for FOSL.
Three candlestick patterns are matching today's price action, the Bullish Hikkake Pattern which is known as bullish pattern and two bearish patterns, the Bearish Short Candle and the Black Candle. The last time a Bullish Hikkake Pattern showed up on May 15th, FOSL gained 12.50% on the following trading day.
Prices are trading close to the key technical resistance level at 3.24 (R1).
Though the share is experiencing a short-term uptrend, this might just be a correction, as both the medium and long-term trends are still bearish.
Buying could accelerate should prices move above the close-by swing high at 3.31 where further buy stops might get triggered.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bullish Hikkake Pattern" stand out. Its common bullish interpretation has been confirmed for Fossil Group. Out of 129 times, FOSL closed higher 53.49% 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 55.04% with an average market move of 1.01%.