TMO pushes through key technical resistance level
Thermo Fisher Scientific Inc (TMO) Technical Analysis Report for Feb 14, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, TMO ended the week 3.98% higher at 339.19 after gaining $3.60 (1.07%) today, outperforming the S&P 500 (0.18%) ahead of tomorrow's Presidents' Day market holiday. Today's close at 339.19 marks the highest recorded closing price since January 22nd. Trading up to $1.51 lower after the open, the share managed to reverse during the session as bulls took control ending the day above its opening price. Closing above Thursday's high at 337.41, Thermo Fisher confirmed its breakout through the prior session high after trading up to $1.99 above it intraday.
Daily Candlestick Chart (TMO as at Feb 14, 2020):
Friday's trading range has been $4.35 (1.29%), that's below the last trading month's daily average range of $6.01. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently higher than usual for TMO.
One bullish candlestick pattern matches today's price action, the White Candle. The last time a White Candle showed up on Monday, TMO gained 1.15% on the following trading day.
Buyers managed to take out the key technical resistance level at 337.64 (now S1), which is likely to act as support going forward.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Buying could speed up should prices move above the close-by swing high at 340.95 where further buy stops might get activated. With prices trading close to this year's high at 342.26, upside momentum could accelerate should the market be able to break out to new highs for the year.
Among the nine market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Close to Swing High" stand out. While it is usually interpreted as neutral, it has actually shown to be bullish for Thermo Fisher. Out of 766 times, TMO closed higher 55.35% 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 58.22% with an average market move of 0.76%.