MA unable to break through key resistance level
Mastercard Incorporated (MA) Technical Analysis Report for Aug 11, 2020 | by Techniquant Editorial Team
MA ended Tuesday at 328.54 gaining $5.66 (1.75%), strongly outperforming the S&P 500 (-0.8%). Closing within the prior day's range, prices failed to decisively move beyond the previous day's trading range.
Daily Candlestick Chart (MA as at Aug 11, 2020):
Tuesday's trading range has been $10.97 (3.38%), that's far above the last trading month's daily average range of $6.90. Weekly volatility is also higher, being slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for MA.
Unable to break through the key technical resistance level at 331.22 (R1), the market closed below it after spiking up to 334.55 earlier during the day. The failure to close above the resistance could increase that levels importance going forward. When prices bounced off a significant resistance level the last time on August 6th, MA lost -0.64% on the following trading day.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Selling might speed up should prices move below the nearby swing low at 321.86 where further sell stops could get activated.
Among the two 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 607 times, MA closed higher 57.00% 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 71.17% with an average market move of 1.75%.