FTV closes lower for the 2nd day in a row
Fortive Corporation (FTV) Technical Analysis Report for Jul 31, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, FTV ended the month 3.74% higher at 70.19 after tanking $1.97 (-2.73%) today on high volume, strongly underperforming the S&P 500 (0.77%). This is the biggest single-day loss in over a month. The bears were in full control today, moving the market lower throughout the whole session. Closing below Thursday's low at 71.62, Fortive confirmed its breakout through the prior session low after trading up to $1.86 below it intraday.
Daily Candlestick Chart (FTV as at Jul 31, 2020):
Friday's trading range has been $2.10 (2.92%), that's far above the last trading month's daily average range of $1.30. Weekly volatility is also higher, being slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for FTV.
Two candlestick patterns are matching today's price action, the Bearish Belt-hold and the Black Candle which are both known as bearish patterns. The last time a Black Candle showed up on Tuesday, FTV actually gained 3.62% on the following trading day.
The stock closed below the 20-day moving average at 70.39 for the first time since July 10th.
Although the market is currently in a short-term downtrend, this might just be a correction, as both the medium and long-term trends are still bullish.
Among the eight market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bearish Belt-hold" stand out. While it is usually interpreted as bearish, it has actually shown to be bullish for Fortive. Out of 8 times, FTV closed higher 75.00% 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 50.00% with an average market move of 1.50%.