MA runs into sellers around 196.70 for the third day in a row
Mastercard Incorporated (MA) Technical Analysis Report for Jan 11, 2019 | by Techniquant Editorial Team
MA ended the week 3.24% higher at 195.90 after losing $1.05 (-0.53%) today on low volume, underperforming the S&P 500 (-0.01%). 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 (MA as at Jan 11, 2019):
Friday's trading range has been $1.99 (1.01%), that's far below the last trading month's daily average range of $5.95. Weekly volatility is also lower, being way below the market's average weekly trading range. The longer-term, monthly volatility is currently lower than usual for MA. Prices continued to consolidate within a tight trading range between 191.32 and 197.24 where it has been caught now for the last three trading days.
During the whole day, prices traded within the previous day's range, unable to trade above the prior day's high or below the previous day's low forming an Inside Bar. After moving higher in the prior session, the share closed lower but above the previous day's open today, forming a bearish Harami Candle. Additionally, one bearish candlestick pattern matches today's price action, the Bearish Spinning Top.
Prices are trading close to the key technical support level at 194.29 (S1). The market ran into sellers again today around 196.70 for the third trading day in a row after having found sellers at 197.24 in the prior session and at 196.55 two days ago. The last time this happened on December 19, 2018, MA lost -2.36% on the following trading day.
While still in a long-term downtrend, the short and medium-term trends both turned bullish already.
Buying might speed up should prices move above the nearby swing high at 197.24 where further buy stops could get triggered. Selling might accelerate should prices move below the close-by swing low at 191.32 where further sell stops could get activated.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Close to Swing Low" stand out. Although it is usually interpreted as neutral, it has actually shown to be bullish for Mastercard Incorporated. Out of 611 times, MA closed higher 54.83% 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 68.41% with an average market move of 1.55%.