FTCH ends the day on a bullish note closing near the high of the day
Farfetch Limited Class A (FTCH) Technical Analysis Report for May 15, 2019 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, FTCH finished Wednesday at 25.33 surging $1.74 (7.38%) on high volume, significantly outperforming the S&P 500 (0.58%) ahead of today's earnings report. This is the biggest single-day gain in over two months. The last time we've seen such an unusually strong single-day gain on March 1st, FTCH gained 3.02% on the following trading day. The bulls were in full control today, moving the market higher throughout the whole session. Ending with a strong close near the high of the day sets a bullish note for the next session.
Daily Candlestick Chart (FTCH as at May 15, 2019):
FTCH is set to report earnings after today's market close. For the upcoming report, analysts expect the company to have earned $-0.16 per share. The company's last earnings report was released on Feb. 28, 2019, when Farfetch Limited Class A reported earnings of $-0.03 per share topping market expectations by 66.7%.
Wednesday's trading range has been $1.92 (8.08%), that's far above the last trading month's daily average range of $0.95. Weekly volatility is also higher, being slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently just the same than usual for FTCH.
Two candlestick patterns are matching today's price action, the Bullish Closing Marubozu and the White Candle which are both known as bullish patterns.
The stock managed to close back above the 20-day moving average at 24.59 for the first time since May 7th. Prices are trading close to the key technical resistance level at 25.72 (R1).
The market shows strength in the short-term supported by its long-term uptrend with only the medium-term trend being bearish.
Buying could speed up should prices move above the close-by swing high at 25.75 where further buy stops might get triggered. As prices are trading close to May's high at 25.76, upside momentum could accelerate should Farfetch mark new highs for the month.
Among the 12 market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Very Strong Up Move" stand out. Its common bullish interpretation has been confirmed for Farfetch. Out of 3 times, FTCH closed higher 100.00% 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 66.67% with an average market move of 9.59%.