FSLY closes below its opening price unable to hold early session gains
Fastly Inc. (FSLY) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team
FSLY finished Wednesday at 82.52 losing $1.56 (-1.86%) on low volume, notably underperforming the S&P 500 (-0.46%). Trading $2.08 higher after the open, the market was unable to hold its gains as the bears took control ending the day below its opening price. The last time this happened on September 10th, FSLY lost -7.94% on the following trading day. 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 (FSLY as at Sep 16, 2020):
Wednesday's trading range has been $3.46 (4.18%), that's far below the last trading month's daily average range of $7.22. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently just the same than usual for FSLY. Prices continued to consolidate within a tight trading range between 80.22 and 84.99 where it has been caught now for the last three trading days.
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 Bearish Spinning Top.
Prices are trading close to the key technical support level at 81.17 (S1). After having been unable to move lower than 81.02 in the previous session, the share found buyers again around the same price level today at 81.34.
Though still in a long-term uptrend, the short and medium-term trends both turned bearish already.
Buying might speed up should prices move above the close-by swing high at 84.99 where further buy stops could get triggered.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bearish Spinning Top" stand out. Although it is usually interpreted as bearish, it has actually shown to be bullish for Fastly. Out of 29 times, FSLY closed higher 68.97% 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 58.62% with an average market move of 10.48%.