OMC dominated by bulls lifting the market higher throughout the day
Omnicom Group (OMC) Technical Analysis Report for Apr 16, 2018 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, OMC ended Monday at 74.03 surging $2.17 (3.02%) on high volume. This is the biggest single day gain in over two months. Today's closing price of 74.03 marks the highest close since March 6th. The bulls were in full control today, moving the market higher throughout the whole session. Closing above Friday's high at 72.34, the share confirms its breakout through the previous session's high having traded $2.13 above it intraday. Ending with a strong close near the high of the day sets a bullish note for the next session.
Daily Candlestick Chart (OMC as at Apr 16, 2018):
Monday's trading range was $3.42 (4.77%), that's far above last trading month's daily average range of $1.48. Weekly volatility is also higher, being slightly above the markets average with the monthly volatility being slightly below average.
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. Even with a weak opening the market managed to close above the prior day's open and close, forming a bullish Engulfing Candle.
Breaking through the key resistance level at 72.90 today, it is now likely to act as support going forward. Prices are trading close to the key resistance level at 74.67. After spiking up to 74.47 during the day, the stock found resistance at the 50-day moving average at 74.14.
OMC shows strength in the short-term supported by its long-term uptrend with only the medium-term trend being bearish. The share managed to break above the 200-day moving average at 73.49 today for the first time since March 2nd.
Further buying could move prices higher should the market test March's close-by high at 75.94.