MA runs into sellers around 335.69 for the third day in a row
Mastercard Incorporated (MA) Technical Analysis Report for Oct 23, 2020 | by Techniquant Editorial Team
MA ended the week -2.88% lower at 329.61 after losing $3.99 (-1.2%) today, strongly underperforming the S&P 500 (0.34%). Today's close at 329.61 marks the lowest recorded closing price since September 24th. The bears were in full control today, moving the market lower throughout the whole session. 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 Oct 23, 2020):
Friday's trading range has been $7.38 (2.2%), that's above the last trading month's daily average range of $6.11. Things look different on the weekly timeframe, where the market's trading range of the last week has been below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for MA.
In a volatile session, prices traded above the prior day's high as well as below the previous day's low, forming a bearish Outside Bar. The last time this happened on October 6th, MA actually gained 1.92% on the following trading day. Additionally, two candlestick patterns are matching today's price action, the Last Engulfing Bottom Pattern which is known as bullish pattern and one bearish pattern, the Black Candle.
Prices are trading close to the key technical support level at 324.81 (S1). Prices are trading close to the key technical resistance level at 334.55 (R1). The market ran into sellers again today around 335.69 for the third trading day in a row after having found sellers at 335.38 in the prior session and at 336.32 two days ago.
Although Mastercard Incorporated is currently in a short-term downtrend, this could just be a correction, as both the medium and long-term trends are still bullish.
Further selling might move prices lower should the market test September's close-by low at 320.81.
Among the 10 market conditions that our pattern recognition engine identified today, the statistics for the Technical Indicators based market condition "RSI(2) below 20" stand out. Its common bullish interpretation has been confirmed for Mastercard Incorporated. Out of 246 times, MA closed higher 61.38% 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 75.61% with an average market move of 2.35%.