MXX breaks back above 20-day moving average
Mexican IPC Index (MXX) Technical Analysis Report for Jun 01, 2020 | by Techniquant Editorial Team
MXX ended Monday at 36980.85 gaining MX$858.12 (2.38%). The bulls were in full control today, moving the market higher throughout the whole session. Closing above Friday's high at 36471.82, the market confirmed its breakout through the prior session high after trading up to MX$660.09 above it intraday.
Daily Candlestick Chart (MXX as at Jun 01, 2020):
Monday's trading range has been MX$1152.69 (3.19%), that's far above the last trading month's daily average range of MX$733.43. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently lower than usual for MXX.
Despite a weak opening IPC managed to close above the previous day's open and close, forming a bullish Engulfing Candle. Additionally, one bullish candlestick pattern matches today's price action, the White Candle.
The stock index managed to close back above the 20-day moving average at 36509.06. When this moving average was crossed above the last time on May 27th, MXX actually lost -1.04% on the following trading day.
The index shows weakness in the short-term (in accordance with its long-term downtrend) with only the medium-term trend still being bullish.
Further buying might move prices higher should the market test May's nearby high at 38015.94.
Among the eight market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Close near high of period" stand out. Its common bullish interpretation has been confirmed for IPC. Out of 681 times, MXX closed higher 53.74% 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 five trading days, showing a win rate of 56.09% with an average market move of 0.00%.