FTI closes lower for the 3rd day in a row
TechnipFMC plc (FTI) Technical Analysis Report for Apr 01, 2020 | by Techniquant Editorial Team
Moving lower for the 3rd day in a row, FTI finished Wednesday at 6.56 losing $0.18 (-2.67%) on low volume, but still strongly outperforming the S&P 500 (-4.41%). Trading $0.23 higher after the open, the stock was unable to hold its gains as the bears took control ending the day below its opening price. The last time this happened on March 6th, FTI lost -26.27% on the following trading day. Ending the day with an indecisive close, neither buyers nor sellers were able to gain control during the session.
Daily Candlestick Chart (FTI as at Apr 01, 2020):
Wednesday's trading range has been $0.51 (7.75%), that's far below the last trading month's daily average range of $0.99. Weekly volatility is also lower, being way below the market's average weekly trading range. The longer-term, monthly volatility is currently lower than usual for FTI.
Three candlestick patterns are matching today's price action, the Bullish Hikkake Pattern and the Southern Doji which are both known as bullish patterns and one neutral pattern, the Doji.
After trading down to 6.30 earlier during the day, TechnipFMC plc bounced off the key technical support level at 6.44 (S1). The failure to close below the support might increase that levels importance as support going forward.
Although the share is experiencing a short-term uptrend, this could just be a correction, as both the medium and long-term trends are still bearish.
Buying might speed up should prices move above the close-by swing high at 7.41 where further buy stops could get triggered.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bullish Hikkake Pattern" stand out. Its common bullish interpretation has been confirmed for TechnipFMC plc. Out of 82 times, FTI closed higher 56.10% 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 54.88% with an average market move of 0.68%.