OMC pushes through Thursday's high
Omnicom Group Inc. (OMC) Technical Analysis Report for Jul 31, 2020 | by Techniquant Editorial Team
OMC ended the month -1.59% lower at 53.73 after gaining $0.47 (0.88%) today, slightly outperforming the S&P 500 (0.77%). Trading up to $0.69 lower after the open, Omnicom Group managed to reverse during the session as bulls took control ending the day above its opening price. Closing above Thursday's high at 53.65, the stock confirmed its breakout through the previous session high after trading up to $0.15 above it intraday.
Daily Candlestick Chart (OMC as at Jul 31, 2020):
Friday's trading range has been $1.57 (2.97%), that's slightly below the last trading month's daily average range of $1.79. 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 slightly lower than usual for OMC.
In a volatile session, prices traded above the prior day's high as well as below the previous day's low, forming a bullish Outside Bar. The last time this happened on June 4th, OMC gained 5.05% on the following trading day. Regardless of a weak opening the market managed to close above the prior day's open and close, forming a bullish Engulfing Candle. Additionally, one bullish candlestick pattern matches today's price action, the White Candle.
Prices are trading close to the key technical support level at 52.96 (S1). After having been unable to move lower than 52.39 in the previous session, the share found buyers again around the same price level today at 52.23.
OMC shows weakness in the short-term (in accordance with its long-term downtrend) with only the medium-term trend still being bullish.
Buying could speed up should prices move above the close-by swing high at 55.51 where further buy stops might get activated. As prices are trading close to July's low at 50.87, downside momentum could accelerate should Omnicom Group mark new lows for the month.
Among the 10 market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Low close to prior low" stand out. Its common bullish interpretation has been confirmed for Omnicom Group. Out of 488 times, OMC closed higher 52.87% 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 53.07% with an average market move of 0.43%.