MXX breaks back above 20-day moving average


Mexican IPC Index (MXX) Technical Analysis Report for Feb 14, 2020 | by Techniquant Editorial Team

Highlights

MXX breaks back above 20-day moving average
MXX closes lower for the 2nd day in a row
MXX finds buyers again around 44850.51
MXX closes within previous day's range after lackluster session

Overview

Moving lower for the 2nd day in a row, MXX ended the week 1.35% higher at 44999.68 after edging lower MX$5.44 (-0.01%) today. Closing within the previous day's range, prices missed to decisively move beyond the prior day's trading range in a lackluster session.

Daily Candlestick Chart (MXX as at Feb 14, 2020):

Daily technical analysis candlestick chart for Mexican IPC Index (MXX) as at Feb 14, 2020

Friday's trading range has been MX$299.84 (0.66%), that's far below the last trading month's daily average range of MX$541.37. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for MXX.

During the whole day, prices traded within the previous day's range, unable to trade above the prior day's high or below the previous day's low forming an Inside Bar.

IPC managed to close back above the 20-day moving average at 44995.99. Prices are trading close to the key technical resistance level at 45189.83 (R1). After having been unable to move lower than 44784.21 in the prior session, the index found buyers again around the same price level today at 44850.51. The last time this happened on Monday, MXX gained 1.66% on the following trading day.

The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.

Selling could accelerate should prices move below the nearby swing low at 44784.21 where further sell stops might get triggered. With prices trading close to this year's high at 45955.41, upside momentum could speed up should the stock index be able to break out to new highs for the year.

Among the four market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Low close to previous low" stand out. Its common bullish interpretation has been confirmed for IPC. Out of 518 times, MXX closed higher 53.47% 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 55.98% with an average market move of 0.30%.


Market Conditions for MXX as at Feb 14, 2020

Loading Market Conditions for MXX (Mexican IPC Index)...
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