M closes lower for the 2nd day in a row
Macy's Inc (M) Technical Analysis Report for Jul 31, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, M ended the month -11.92% lower at 6.06 after losing $0.16 (-2.57%) today, strongly underperforming the S&P 500 (0.77%). Today's close at 6.06 marks the lowest recorded closing price since June 26th. Closing below Thursday's low at 6.18, the market confirmed its breakout through the previous session low after trading up to $0.18 below it intraday.
Daily Candlestick Chart (M as at Jul 31, 2020):
Friday's trading range has been $0.32 (5.11%), that's below the last trading month's daily average range of $0.38. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for M.
One bearish candlestick pattern matches today's price action, the Black Candle. The last time a Black Candle showed up on Monday, M actually gained 3.54% on the following trading day.
Crossing below the lower Bollinger Band for the first time since Monday, prices have shown unusually strong downward momentum in the short-term. This could either indicate a potential selling climax after which prices might head back up towards the mean of the Bollinger Bands at 6.58 or signal the beginning of a strong momentum breakout leading to even lower prices.
The stock shows weakness in the short-term (in accordance with its long-term downtrend) with only the medium-term trend still being bullish.
Further selling could move prices lower should the market test June's close-by low at 5.96.
Among the eight market conditions that our pattern recognition engine identified today, the statistics for the Technical Indicators based market condition "Close crossed below the lower Bollinger Band" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for Macy's. Out of 69 times, M closed higher 56.52% of the time on the next trading day after the market condition occurred.