INT breaks below Thursday's low
World Fuel Services Corporation (INT) Technical Analysis Report for May 22, 2020 | by Techniquant Editorial Team
INT finished the week 12.91% higher at 23.79 after losing $0.60 (-2.46%) today on low volume, significantly underperforming the S&P 500 (0.24%) ahead of tomorrow's Memorial Day market holiday. Closing below Thursday's low at 23.94, the market confirmed its breakout through the prior session low after trading up to $0.44 below it intraday.
Daily Candlestick Chart (INT as at May 22, 2020):
Friday's trading range has been $1.36 (5.52%), that's slightly below the last trading month's daily average range of $1.47. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for INT.
In a volatile session, prices traded above the previous day's high as well as below the prior day's low, forming a bearish Outside Bar. The last time this happened on May 1st, INT actually gained 2.38% on the following trading day. Even with a strong opening the stock closed below the previous day's open and close, forming a bearish Engulfing Candle. Additionally, one bearish candlestick pattern matches today's price action, the Black Candle.
After trading as low as 23.50 during the day, the share found support at the 50-day moving average at 23.72.
World Fuel shows weakness in the short-term (in accordance with its long-term downtrend) with only the medium-term trend still being bullish.
Buying could accelerate should prices move above the close-by swing high at 25.10 where further buy stops might get triggered. As prices are trading close to May's high at 26.33, upside momentum could speed up should INT mark new highs for the month.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bullish Bounce off SMA 50" stand out. Its common bullish interpretation has been confirmed for World Fuel. Out of 33 times, INT closed higher 63.64% 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 66.67% with an average market move of 1.38%.