TMO rises to highest close ever
Thermo Fisher Scientific Inc (TMO) Technical Analysis Report for Jul 31, 2020 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, TMO finished the month 14.24% higher at 413.95 after gaining $3.39 (0.83%) today, slightly outperforming the S&P 500 (0.77%). Today's close at 413.95 marks the highest recorded closing price ever. The bulls were in full control today, moving the market higher throughout the whole session. Closing above Thursday's high at 412.70, the market confirmed its breakout through the prior session high after trading up to $1.67 above it intraday.
Daily Candlestick Chart (TMO as at Jul 31, 2020):
Friday's trading range has been $6.79 (1.66%), that's below the last trading month's daily average range of $9.40. Weekly volatility is also lower, being way below the market's average weekly trading range. The longer-term, monthly volatility is currently lower than usual for TMO. Prices continued to consolidate within a tight trading range between 404.35 and 416.52 where it has been caught now for the whole last trading week.
Two candlestick patterns are matching today's price action, the Bullish Short Candle and the White Candle which are both known as bullish patterns. The last time a Bullish Short Candle showed up on May 22nd, TMO actually lost -2.26% on the following trading day.
Prices are trading close to the key technical resistance level at 416.52 (R1).
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Buying might speed up should prices move above the close-by swing high at 416.52 where further buy stops could get triggered.
Among the 10 market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Close to Swing High" stand out. Although it is usually interpreted as neutral, it has actually shown to be bullish for Thermo Fisher. Out of 779 times, TMO closed higher 55.07% 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 59.44% with an average market move of 0.94%.