FSLY snaps to lowest close since July 17th
Fastly Inc. (FSLY) Technical Analysis Report for Aug 10, 2020 | by Techniquant Editorial Team
Moving lower for the 4th day in a row, FSLY finished Monday at 78.18 losing $1.15 (-1.45%), notably underperforming the S&P 500 (0.27%). Today's close at 78.18 marks the lowest recorded closing price since July 17th. Closing within the prior day's range, prices failed to decisively move beyond the previous day's trading range.
Daily Candlestick Chart (FSLY as at Aug 10, 2020):
Monday's trading range has been $8.80 (10.62%), that's slightly above the last trading month's daily average range of $7.58. Weekly volatility is also higher, being way above the market's average weekly trading range. The longer-term, monthly volatility is currently just the same than usual for FSLY.
During the whole day, prices traded within the prior day's range, unable to trade above the previous day's high or below the prior day's low forming an Inside Bar. Additionally, one bearish candlestick pattern matches today's price action, the Black Candle.
Prices are trading close to the key technical resistance level at 81.75 (R1). After having been unable to move lower than 76.52 in the previous session, the share found buyers again around the same price level today at 76.55. The last time this happened on July 17th, FSLY gained 8.78% on the following trading day.
While the market is currently in a short-term downtrend, this could just be a correction, as both the medium and long-term trends are still bullish.
Selling might accelerate should prices move below the nearby swing low at 76.52 where further sell stops could get triggered. Further selling might move prices lower should the market test July's close-by low at 73.87.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "4 Consecutive Lower Closes" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for Fastly. Out of 7 times, FSLY closed higher 85.71% 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 71.43% with an average market move of 29.23%.