MA still stuck within tight trading range
Mastercard Incorporated (MA) Technical Analysis Report for Jul 31, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, MA finished the month 4.34% higher at 308.53 after edging lower $0.47 (-0.15%) today, underperforming the S&P 500 (0.77%). Closing within the previous day's range, prices missed to decisively move beyond the prior day's trading range in a lackluster session.
Daily Candlestick Chart (MA as at Jul 31, 2020):
Friday's trading range has been $4.48 (1.45%), that's below the last trading month's daily average range of $6.91. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for MA. Prices continued to consolidate within a tight trading range between 303.04 and 312.82 where it has been caught now for the whole last trading week.
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 trading down to 305.61 earlier during the day, the share bounced off the key technical support level at 308.11 (S1). The failure to close below the support could increase that levels significance as support going forward. When prices bounced off a significant support level the last time on July 16th, MA gained 1.57% on the following trading day.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Buying might accelerate should prices move above the close-by swing high at 312.82 where further buy stops could get activated. Selling might speed up should prices move below the nearby swing low at 303.04 where further sell stops could get triggered.
Among the four market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Close to Swing Low" stand out. While it is usually interpreted as neutral, it has actually shown to be bullish for Mastercard Incorporated. Out of 608 times, MA closed higher 56.91% 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 70.89% with an average market move of 1.76%.