FTI stuck within tight trading range
TechnipFMC plc (FTI) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team
FTI finished Thursday at 7.08 gaining $0.10 (1.43%) on low volume, significantly underperforming the S&P 500 (6.24%). Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range in a lackluster session.
Daily Candlestick Chart (FTI as at Mar 26, 2020):
Thursday's trading range has been $0.61 (8.96%), that's far below the last trading month's daily average range of $1.04. Weekly volatility is also lower, being way below the market's average weekly trading range. The longer-term, monthly volatility is currently higher than usual for FTI. Prices continued to consolidate within a tight trading range between 6.53 and 7.47 where it has been caught now for the last three trading days.
During the whole day, prices traded within the previous day's range, unable to trade above the prior day's high or below the previous day's low forming an Inside Bar.
Prices are trading close to the key technical resistance level at 7.83 (R1). The market found buyers again today around 6.69 for the third trading day in a row after having found demand at 6.53 in the prior session and at 6.53 two days ago. The last time this happened on March 3rd, FTI actually lost -1.25% on the following trading day.
Although the stock 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 speed up should prices move above the close-by swing high at 7.83 where further buy stops might get activated.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "High close to previous two Highs" stand out. Its common bearish interpretation has been confirmed for TechnipFMC plc. Out of 123 times, FTI closed lower 50.41% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the short side has been after 10 trading days, showing a win rate of 53.66% with an average market move of -1.09%.