OMC closes within prior day's range
Omnicom Group Inc. (OMC) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, OMC finished Thursday at 56.35 gaining $4.19 (8.03%), notably outperforming the S&P 500 (6.24%). The bulls were in full control today, moving the market higher throughout the whole session. Closing within the prior day's range, prices missed to decisively move beyond the previous day's trading range.
Daily Candlestick Chart (OMC as at Mar 26, 2020):
Thursday's trading range has been $4.10 (7.77%), that's slightly below the last trading month's daily average range of $4.28. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently higher than usual for OMC.
During the whole day, prices traded within the prior day's range, unable to trade above the previous day's high or below the prior day's low forming an Inside Bar. Additionally, one bullish candlestick pattern matches today's price action, the White Candle.
Buyers managed to take out the key technical resistance level at 55.35 (now S1), which is likely to act as support going forward. Prices are trading close to the key technical resistance level at 59.43 (R1). After having been unable to move above 56.68 in the previous session, the share ran into sellers again around the same price level today, missing to move higher than 56.59. The last time this happened on March 17th, OMC lost -5.85% on the following trading day.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Buying might speed up should prices move above the close-by swing high at 56.68 where further buy stops could get activated.
Among the nine market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "3 Consecutive Higher Closes" stand out. Its common bullish interpretation has been confirmed for Omnicom Group. Out of 168 times, OMC closed higher 52.98% 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 55.95% with an average market move of 0.73%.