MXX runs into sellers around 37874.47 for the third day in a row
Mexican IPC Index (MXX) Technical Analysis Report for Jun 30, 2020 | by Techniquant Editorial Team
MXX ended the month 4.41% higher at 37716.43 after edging lower MX$52.76 (-0.14%) today. Trading up to MX$281.88 lower after the open, the market managed to reverse during the session as bulls took control ending the day above its opening price. 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 Jun 30, 2020):
Tuesday's trading range has been MX$448.63 (1.19%), that's below the last trading month's daily average range of MX$641.54. Weekly volatility is also lower, being way below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for MXX. Prices continued to consolidate within a tight trading range between 37273.51 and 37874.47 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 bullish Outside Bar. Additionally, two candlestick patterns are matching today's price action, the Southern Doji which is known as bullish pattern and one neutral pattern, the Doji. The last time a Southern Doji showed up on May 20th, MXX actually lost -1.29% on the following trading day.
The index ran into sellers again today around 37874.47 for the third trading day in a row after having found sellers at 37824.88 in the previous session and at 37794.67 two days ago.
The stock index shows weakness in the short-term (in accordance with its long-term downtrend) with only the medium-term trend still being bullish.
Selling could speed up should prices move below the nearby swing low at 37273.51 where further sell stops might get activated.
Among the eight market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "High close to prior two Highs" stand out. Although it is usually interpreted as bearish, it has actually shown to be bullish for IPC. Out of 128 times, MXX closed higher 56.25% of the time on the next trading day after the market condition occurred.