FTCH finds buyers again around 12.41
Farfetch Limited Class A (FTCH) Technical Analysis Report for Feb 14, 2020 | by Techniquant Editorial Team
FTCH finished the week 5.33% higher at 12.64 after gaining $0.04 (0.32%) today, slightly outperforming the S&P 500 (0.18%) ahead of tomorrow's Presidents' Day market holiday. Closing within the prior day's range, prices failed to decisively move beyond the previous day's trading range.
Daily Candlestick Chart (FTCH as at Feb 14, 2020):
Friday's trading range has been $0.49 (3.88%), that's slightly below the last trading month's daily average range of $0.60. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently just the same than usual for FTCH. Prices continued to consolidate within a tight trading range between 12.31 and 12.90 where it has been caught now for the last three trading days.
Five candlestick patterns are matching today's price action, the Bearish Hikkake Pattern and the Northern Doji which are both known as bearish patterns and three neutral patterns, the Doji, the Long-Legged Doji and the Rickshaw-Man. The last time a Bearish Hikkake Pattern showed up on Tuesday, FTCH actually gained 4.44% on the following trading day.
Unable to break through the key technical resistance level at 12.65 (R1), the market closed below it after spiking up to 12.90 earlier during the day. The failure to close above the resistance might increase that levels significance going forward. After having been unable to move lower than 12.39 in the prior session, Farfetch found buyers again around the same price level today at 12.41.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
With prices trading close to this year's high at 13.48, upside momentum could speed up should the stock be able to break out to new highs for the year.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bearish Hikkake Pattern" stand out. While it is usually interpreted as bearish, it has actually shown to be bullish for Farfetch. Out of 17 times, FTCH closed higher 76.47% 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 52.94% with an average market move of 1.46%.