TMO closes lower for the 3rd day in a row
Thermo Fisher Scientific Inc (TMO) Technical Analysis Report for Sep 18, 2020 | by Techniquant Editorial Team
Moving lower for the 3rd day in a row, TMO finished the week -0.48% lower at 429.05 after losing $3.88 (-0.9%) today, but still slightly outperforming the S&P 500 (-1.12%). Closing within the prior day's range, prices missed to decisively move beyond the previous day's trading range in a lackluster session.
Daily Candlestick Chart (TMO as at Sep 18, 2020):
Friday's trading range has been $7.76 (1.82%), that's below the last trading month's daily average range of $10.67. Weekly volatility is also lower, being way below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for TMO.
Unable to break through the key technical resistance level at 432.38 (R1), the stock closed below it after spiking up to 433.84 earlier during the day. The failure to close above the resistance could increase that levels significance going forward. When prices bounced off a significant resistance level the last time on September 11th, TMO actually gained 0.69% on the following trading day.
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 Thermo Fisher be able to break out to new highs for the year.
Among the three market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "3 Consecutive Lower Closes" stand out. While it is usually interpreted as bearish, it has actually shown to be bullish for Thermo Fisher. Out of 123 times, TMO closed higher 56.91% 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 64.23% with an average market move of 1.37%.