FXCM Gives Back Two-Day Gain
FXCM Inc (NYSE: FXCM) shares are trading lower by $2.60 at $14.33 in Wednesday's session. The issue staged a two-day rally from Friday's close ($13.60) to end Tuesday's session at $16.93.
On Monday, the company announced a new partnership with a software developer for currency trading). That news sent the issue higher by nearly $2 and the issue had some follow through on Tuesday.
However, the issue found resistance in a familiar area. Tuesday's rally came to an abrupt halt at $18.50. That was one penny shy of its January 6 high ($18.50) and $0.30 of its December 31 high ($18.81). It still managed to end Tuesday's session higher by $0.38 at $16.93.
Related Link: FXCM Falls 15% Following Release Of Trading Metrics
Most of the gains have been erased by the company's recent report on customer volume. Although December retail customer volume was up 9 percent year-over-year to $323 billion, institutional customer volume plunged year-over-year 51 percent to $36 billion.
The disappointing report instigated a sharply lower open. It attempted to reach the lower end of Tuesday's range ($16), but was turned back at $15.70. It has come back down and has continued to make lows for the session. At this time, $14.28 stands as the current low.
If the decline continues, there are only minor support levels until Monday's low of $12.18.
It should be noted, the issue staged a mysterious rally from its December 15 close ($6.76) to reach an intra-day high 10 sessions later at $24.77. The intra-day gains did not hold and issue fell back to close at $18.48. The same area that provided resistance in Tuesday's session.
© 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.