MA closes higher for the 3rd day in a row
Mastercard Incorporated (MA) Technical Analysis Report for Oct 11, 2019 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, MA finished the week 0.68% higher at 275.91 after gaining $2.08 (0.76%) today, slightly underperforming the S&P 500 (1.09%). Today's close at 275.91 marks the highest recorded closing price since September 17th. Trading $3.80 higher after the open, Mastercard Incorporated was unable to hold its gains as the bears took control ending the day below its opening price. Ending the day with an indecisive close, neither buyers nor sellers were able to gain control during the session.
Daily Candlestick Chart (MA as at Oct 11, 2019):
Friday's trading range has been $4.88 (1.77%), that's slightly below the last trading month's daily average range of $5.01. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently lower than usual for MA.
Two candlestick patterns are matching today's price action, the Bearish Spinning Top and the Shooting Star which are both known as bearish patterns. The last time a Shooting Star showed up on May 31st, MA lost -3.67% on the following trading day.
The share managed to close above the 50-day moving average at 274.52 for the first time since September 12th. Unable to break through the key technical resistance level at 279.48 (R1), the stock closed below it after spiking up to 280.00 earlier during the day. The failure to close above the resistance could increase that levels significance going forward.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Among the nine market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Close near low of period" stand out. While it is usually interpreted as bearish, it has actually shown to be bullish for Mastercard Incorporated. Out of 507 times, MA closed higher 61.34% 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 65.29% with an average market move of 1.48%.