M closes above its opening price after recovering from early selling pressure
Macy's Inc (M) Technical Analysis Report for Nov 09, 2018 | by Techniquant Editorial Team
M finished the week 6.3% higher at 37.78 after edging lower $0.01 (-0.03%) today on low volume, but still outperforming the S&P 500 (-0.92%). Trading up to $0.45 lower after the open, the share 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 failed to decisively move beyond the prior day's trading range in a lackluster session.
Daily Candlestick Chart (M as at Nov 09, 2018):
Friday's trading range has been $0.77 (2.05%), that's below the last trading month's daily average range of $1.23. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently higher than usual for M.
One bullish candlestick pattern matches today's price action, the Tweezer Top. The last time a Tweezer Top showed up on June 8, 2016, M actually lost -1.93% on the following trading day.
After having been unable to move above 37.93 in the previous session, the market ran into sellers again around the same price level today, failing to move higher than 37.93.
While still in a long-term downtrend, the short and medium-term trends both turned bullish already.
Among the four market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Tweezer Top" stand out. Although it is usually interpreted as bullish, it has actually shown to be bearish for Macy's. Out of 16 times, M closed lower 68.75% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the short side has been after nine trading days, showing a win rate of 50.00% with an average market move of -0.71%.