FTV closes above its opening price after recovering from early selling pressure
Fortive Corporation (FTV) Technical Analysis Report for May 22, 2020 | by Techniquant Editorial Team
FTV ended the week 5.94% higher at 58.53 after gaining $0.25 (0.43%) today on low volume, slightly outperforming the S&P 500 (0.24%) ahead of tomorrow's Memorial Day market holiday. Trading up to $1.06 lower after the open, the share managed to reverse during the session as bulls took control ending the day above its opening price. Closing within the prior day's range, prices failed to decisively move beyond the previous day's trading range in a lackluster session.
Daily Candlestick Chart (FTV as at May 22, 2020):
Friday's trading range has been $1.31 (2.24%), that's below the last trading month's daily average range of $2.09. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for FTV.
Two candlestick patterns are matching today's price action, the Bullish Spinning Top which is known as bullish pattern and one bearish pattern, the Hanging Man. The last time a Hanging Man showed up on April 30th, FTV lost -5.08% on the following trading day.
After trading down to 57.39 earlier during the day, Fortive bounced off the key technical support level at 58.02 (S1). The failure to close below the support could increase that levels significance as support going forward.
The market shows weakness in the short-term (in accordance with its long-term downtrend) with only the medium-term trend still being bullish.
Buying might speed up should prices move above the nearby swing high at 60.86 where further buy stops could get triggered.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bounced off Technical Support S1" stand out. Its common bullish interpretation has been confirmed for Fortive. Out of 145 times, FTV closed higher 60.69% 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 62.07% with an average market move of 0.68%.