OMC closes below its opening price unable to hold early session gains
Omnicom Group Inc. (OMC) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team
OMC ended Wednesday at 53.92 gaining $0.21 (0.39%) on high volume, outperforming the S&P 500 (-0.46%). Trading $1.11 higher after the open, the share was unable to hold its gains as the bears took control ending the day below its opening price. Closing within the previous day's range, prices missed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (OMC as at Sep 16, 2020):
Wednesday's trading range has been $1.54 (2.85%), that's slightly above the last trading month's daily average range of $1.44. 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 OMC.
Two candlestick patterns are matching today's price action, the Bearish Spinning Top and the Shooting Star which are both known as bearish patterns. The last time a Shooting Star showed up on August 11th, OMC lost -2.85% on the following trading day.
Prices are trading close to the key technical support level at 53.15 (S1).
The market shows strength in the short-term supported by its long-term uptrend with only the medium-term trend being bearish.
As prices are trading close to September's high at 55.95, upside momentum might speed up should Omnicom Group mark new highs for the month.
Among the four market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bearish Spinning Top" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for Omnicom Group. Out of 216 times, OMC closed higher 55.56% 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 eight trading days, showing a win rate of 51.39% with an average market move of 0.16%.