MAC finds buyers at key support level
Macerich Company (MAC) Technical Analysis Report for Dec 07, 2018 | by Techniquant Editorial Team
MAC finished the week 0.7% higher at 50.64 after losing $0.28 (-0.55%) today, but still strongly outperforming the S&P 500 (-2.33%) following today's NFP report. Trading $0.34 higher after the open, the share was unable to hold its gains as the bears took control ending the day below its opening price. 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 (MAC as at Dec 07, 2018):
Friday's trading range has been $0.75 (1.48%), that's below the last trading month's daily average range of $1.08. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for MAC.
After moving higher in the previous session, the stock closed lower but above the prior day's open today, forming a bearish Harami Candle. Additionally, one bearish candlestick pattern matches today's price action, the Bearish Spinning Top.
After trading down to 50.33 earlier during the day, the market bounced off the key technical support level at 50.34 (S1). The failure to close below the support might increase that levels importance as support going forward. After spiking up to 51.08 during the day, Macerich found resistance at the 50-day moving average at 51.05. The last time this happened on September 6th, MAC lost -2.43% on the following trading day. After having been unable to move above 50.98 in the previous session, MAC ran into sellers again around the same price level today, missing to move higher than 51.08.
While the share is experiencing a short-term uptrend, this could just be a correction, as both the medium and long-term trends are still bearish.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bearish Spinning Top" stand out. Although it is usually interpreted as bearish, it has actually shown to be bullish for Macerich. Out of 220 times, MAC closed higher 57.27% 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 52.73% with an average market move of 1.14%.