TMO finds buyers around 432.70 for the third day in a row
Thermo Fisher Scientific Inc (TMO) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team
TMO finished Wednesday at 433.88 losing $1.22 (-0.28%), but still slightly outperforming the S&P 500 (-0.46%). Closing within the previous day's range, prices missed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (TMO as at Sep 16, 2020):
Wednesday's trading range has been $8.07 (1.84%), that's slightly below the last trading month's daily average range of $10.42. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for TMO. Prices continued to consolidate within a tight trading range between 432.70 and 440.77 where it has been caught now for the last three trading days.
In a volatile session, prices traded above the previous day's high as well as below the prior day's low, forming a bearish Outside Bar. In spite of a strong opening the share closed below the previous day's open and close, forming a bearish Engulfing Candle. Additionally, one bearish candlestick pattern matches today's price action, the Black Candle. The last time a Black Candle showed up on September 4th, TMO lost -1.14% on the following trading day.
Prices are trading close to the key technical support level at 432.38 (S1). Thermo Fisher found buyers again today around 432.70 for the third trading day in a row after having found demand at 433.15 in the prior session and at 433.02 two days ago.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
With prices trading close to this year's high at 441.96, upside momentum might speed up should the market be able to break out to new highs for the year.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Close near low of period" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for Thermo Fisher. Out of 467 times, TMO closed higher 55.67% 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 63.17% with an average market move of 1.19%.