M unable to break through key resistance level
Macy's Inc (M) Technical Analysis Report for Aug 10, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, M ended Monday at 7.14 surging $0.52 (7.85%), significantly outperforming the S&P 500 (0.27%). This is the biggest single-day gain in over a month. Today's close at 7.14 marks the highest recorded closing price since July 15th. The bulls were in full control today, moving the market higher throughout the whole session. Closing above Friday's high at 6.69, the market confirmed its breakout through the prior session high after trading up to $0.60 above it intraday.
Daily Candlestick Chart (M as at Aug 10, 2020):
Monday's trading range has been $0.69 (10.36%), that's far above the last trading month's daily average range of $0.37. Weekly volatility is also higher, being above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for M.
One bullish candlestick pattern matches today's price action, the White Candle. The last time a White Candle showed up on August 7th, M gained 7.85% on the following trading day.
Macy's managed to close above the 50-day moving average at 6.91 for the first time since July 21st. Unable to break through the key technical resistance level at 7.20 (R1), the share closed below it after spiking up to 7.29 earlier during the day. The failure to close above the resistance might increase that levels significance going forward.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Among the eight market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bullish Break through SMA 50" stand out. Its common bullish interpretation has been confirmed for Macy's. Out of 89 times, M closed higher 60.67% 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 60.67% with an average market move of 2.20%.