MA closes within prior day's range after lackluster session
Mastercard Incorporated (MA) Technical Analysis Report for May 22, 2020 | by Techniquant Editorial Team
MA finished the week 5.73% higher at 294.91 after edging higher $0.65 (0.22%) today on low volume, slightly underperforming the S&P 500 (0.24%) ahead of tomorrow's Memorial Day market holiday. Trading $1.74 higher after the open, the stock was unable to hold its gains as the bears took control ending the day below its opening price. Closing within the prior day's range, prices failed to decisively move beyond the previous day's trading range in a lackluster session.
Daily Candlestick Chart (MA as at May 22, 2020):
Friday's trading range has been $3.79 (1.28%), that's far below the last trading month's daily average range of $7.33. 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 MA.
During the whole day, prices traded within the prior day's range, unable to trade above the previous day's high or below the prior day's low forming an Inside Bar. Additionally, two candlestick patterns are matching today's price action, the Northern Doji which is known as bearish pattern and one neutral pattern, the Doji. The last time a Northern Doji showed up on April 24th, MA actually gained 2.46% on the following trading day.
Prices are trading close to the key technical support level at 292.75 (S1). After having been unable to move lower than 292.75 in the previous session, the share found buyers again around the same price level today at 293.01.
While still in a long-term downtrend, the short and medium-term trends both turned bullish already.
Buying might accelerate should prices move above the close-by swing high at 301.15 where further buy stops could get triggered. Selling might speed up should prices move below the nearby swing low at 292.75 where further sell stops could get activated.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Bearish Intraday Reversal" stand out. Although it is usually interpreted as bearish, it has actually shown to be bullish for Mastercard Incorporated. Out of 369 times, MA closed higher 58.81% 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 68.56% with an average market move of 1.66%.