FTI closes above its opening price after recovering from early selling pressure
TechnipFMC plc (FTI) Technical Analysis Report for Jul 31, 2020 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, FTI ended the month 17.4% higher at 8.03 after edging higher $0.02 (0.25%) today on high volume, underperforming the S&P 500 (0.77%). Trading up to $0.26 lower after the open, the stock managed to reverse during the session as bulls took control ending the day above its opening price. Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (FTI as at Jul 31, 2020):
Friday's trading range has been $0.42 (5.26%), that's above the last trading month's daily average range of $0.35. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for FTI.
One bullish candlestick pattern matches today's price action, the Bullish Spinning Top. The last time a Bullish Spinning Top showed up on July 16th, FTI actually lost -2.16% on the following trading day.
Unable to break through the key technical resistance level at 8.04 (R1), TechnipFMC plc closed below it after spiking up to 8.14 earlier during the day. The failure to close above the resistance might increase that levels importance going forward. After having been unable to move lower than 7.73 in the previous session, the share found buyers again around the same price level today at 7.72.
Though still in a long-term downtrend, the short and medium-term trends both turned bullish already.
Buying could accelerate should prices move above the close-by swing high at 8.15 where further buy stops might get triggered.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "3 Consecutive Higher Closes" stand out. While it is usually interpreted as bullish, it has actually shown to be bearish for TechnipFMC plc. Out of 144 times, FTI closed lower 54.17% 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 54.17% with an average market move of -1.00%.