OMC closes within previous day's range after lackluster session
Omnicom Group Inc. (OMC) Technical Analysis Report for Jun 30, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, OMC ended the month -0.35% lower at 54.60 after gaining $0.31 (0.57%) today, underperforming the S&P 500 (1.54%). Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range in a lackluster session.
Daily Candlestick Chart (OMC as at Jun 30, 2020):
Tuesday's trading range has been $1.16 (2.14%), that's far below the last trading month's daily average range of $2.29. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for OMC.
During the whole day, prices traded within the previous day's range, unable to trade above the prior day's high or below the previous day's low forming an Inside Bar. Additionally, one bullish candlestick pattern matches today's price action, the Bullish Spinning Top. The last time a Bullish Spinning Top showed up on April 24th, OMC gained 4.44% on the following trading day.
Prices are trading close to the key technical support level at 53.50 (S1). After having been unable to move above 55.28 in the prior session, the share ran into sellers again around the same price level today, failing to move higher than 55.05.
Omnicom Group 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 55.28 where further buy stops might get activated.
Among the four market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bullish Spinning Top" stand out. Its common bullish interpretation has been confirmed for Omnicom Group. Out of 244 times, OMC closed higher 54.51% 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 55.74% with an average market move of 0.58%.