MA unable to break through key resistance level
Mastercard Incorporated (MA) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, MA finished Wednesday at 341.85 gaining $2.71 (0.8%), notably outperforming the S&P 500 (-0.46%). Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (MA as at Sep 16, 2020):
Wednesday's trading range has been $6.25 (1.83%), that's slightly below the last trading month's daily average range of $8.35. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for MA.
One bullish candlestick pattern matches today's price action, the Bullish Spinning Top. The last time a Bullish Spinning Top showed up on September 9th, MA actually lost -1.99% on the following trading day.
Unable to break through the key technical resistance level at 345.13 (R1), the share closed below it after spiking up to 346.04 earlier during the day. The failure to close above the resistance could increase that levels significance going forward. After having been unable to move lower than 338.53 in the previous session, the stock found buyers again around the same price level today at 339.79.
While Mastercard Incorporated is currently in a short-term downtrend, this might just be a correction, as both the medium and long-term trends are still bullish.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "3 Consecutive Higher Closes" stand out. Its common bullish interpretation has been confirmed for Mastercard Incorporated. Out of 183 times, MA closed higher 56.83% 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 65.03% with an average market move of 0.77%.