TMO closes within prior day's range after lackluster session
Thermo Fisher Scientific Inc (TMO) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team
TMO finished Thursday at 283.15 gaining $11.47 (4.22%), notably underperforming the S&P 500 (6.24%). 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 (TMO as at Mar 26, 2020):
Thursday's trading range has been $14.75 (5.37%), that's below the last trading month's daily average range of $18.68. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently higher than usual for TMO. Prices continued to consolidate within a tight trading range between 250.21 and 285.75 where it has been caught now for the whole last trading week.
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 White Candle. The last time a White Candle showed up on Tuesday, TMO actually lost -3.67% on the following trading day.
Prices are trading close to the key technical support level at 268.55 (S1). Prices are trading close to the key technical resistance level at 285.75 (R1). The market ran into sellers again today around 285.05 for the third trading day in a row after having found sellers at 285.75 in the prior session and at 284.00 two days ago.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Buying could accelerate should prices move above the close-by swing high at 285.75 where further buy stops might get activated.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "High close to previous two Highs" stand out. Although it is usually interpreted as bearish, it has actually shown to be bullish for Thermo Fisher. Out of 108 times, TMO closed higher 62.96% 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 62.04% with an average market move of 1.10%.