MAC finds buyers again around 22.64
Macerich Company (MAC) Technical Analysis Report for Feb 14, 2020 | by Techniquant Editorial Team
Moving lower for the 4th day in a row, MAC ended the week -2.23% lower at 22.84 after edging lower $0.02 (-0.09%) today, slightly underperforming the S&P 500 (0.18%) ahead of tomorrow's Presidents' Day market holiday. Trading up to $0.17 lower after the open, the market managed to reverse during the session as bulls took control ending the day above 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 Feb 14, 2020):
Friday's trading range has been $0.42 (1.84%), that's below the last trading month's daily average range of $0.98. Things look different on the weekly timeframe, where the market's trading range of the last week has been way above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for MAC.
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. Additionally, one bullish candlestick pattern matches today's price action, the Bullish Spinning Top.
Prices are trading close to the key technical support level at 22.25 (S1). Prices are trading close to the key technical resistance level at 23.14 (R1). After having been unable to move lower than 22.63 in the prior session, Macerich found buyers again around the same price level today at 22.64. The last time this happened on February 3rd, MAC gained 5.56% on the following trading day.
While the share is experiencing a short-term uptrend, this might just be a correction, as both the medium and long-term trends are still bearish.
Selling could speed up should prices move below the nearby swing low at 22.63 where further sell stops might get triggered. With prices trading close to this year's low at 22.25, downside momentum could accelerate should the stock break out to new lows for the year. As prices are trading close to February's low at 22.33, downside momentum might speed up should MAC mark new lows for the month.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "4 Consecutive Lower Closes" stand out. Although it is usually interpreted as bearish, it has actually shown to be bullish for Macerich. Out of 76 times, MAC closed higher 59.21% 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 55.26% with an average market move of 0.47%.