TMO finds buyers around 349.59 for the third day in a row
Thermo Fisher Scientific Inc (TMO) Technical Analysis Report for Jun 30, 2020 | by Techniquant Editorial Team
TMO finished the month 3.77% higher at 362.34 after surging $11.54 (3.29%) today, notably outperforming the S&P 500 (1.54%). This is the biggest single-day gain in over two months. The last time we've seen such an unusually strong single-day gain on March 24th, TMO actually lost -3.67% on the following trading day. Today's close at 362.34 marks the highest recorded closing price ever. The bulls were in full control today, moving the market higher throughout the whole session. Closing above Monday's high at 353.44, Thermo Fisher confirmed its breakout through the previous session high after trading up to $10.53 above it intraday.
Daily Candlestick Chart (TMO as at Jun 30, 2020):
Tuesday's trading range has been $14.38 (4.1%), that's far above the last trading month's daily average range of $8.09. Weekly volatility is also higher, being slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for TMO.
Two candlestick patterns are matching today's price action, the White Candle which is known as bullish pattern and one bearish pattern, the Bearish Hikkake Pattern.
The share found buyers again today around 349.59 for the third trading day in a row after having found demand at 349.04 in the prior session and at 348.26 two days ago.
Crossing above the upper Bollinger Band for the first time since May 29th, prices have shown unusually strong upward momentum in the short-term. This could either indicate a potential buying climax after which prices might head back down towards the mean of the Bollinger Bands at 349.35 or signal the beginning of a strong momentum breakout leading to even higher prices.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Among the 14 market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bearish Hikkake Pattern" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for Thermo Fisher. Out of 129 times, TMO closed higher 51.16% 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 65.89% with an average market move of 1.66%.