MAC breaks below Thursday's low
Macerich Company (MAC) Technical Analysis Report for May 22, 2020 | by Techniquant Editorial Team
Moving lower for the 3rd day in a row, MAC finished the week 9.28% higher at 6.95 after losing $0.41 (-5.57%) today, significantly underperforming the S&P 500 (0.24%) ahead of tomorrow's Memorial Day market holiday. The bears were in full control today, moving the market lower throughout the whole session. Closing below Thursday's low at 7.21, Macerich confirmed its breakout through the previous session low after trading up to $0.30 below it intraday.
Daily Candlestick Chart (MAC as at May 22, 2020):
Friday's trading range has been $0.48 (6.58%), that's below the last trading month's daily average range of $0.71. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently lower than usual for MAC.
Three candlestick patterns are matching today's price action, the Bullish Hikkake Pattern which is known as bullish pattern and two bearish patterns, the Bearish Short Candle and the Black Candle. The last time a Bullish Hikkake Pattern showed up on April 24th, MAC gained 12.90% on the following trading day.
The share closed back below the 50-day moving average at 7.07.
While the stock is experiencing a short-term uptrend, this might just be a correction, as both the medium and long-term trends are still bearish.
Buying could speed up should prices move above the close-by swing high at 7.79 where further buy stops might get activated.
Among the 11 market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bearish Short Candle" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for Macerich. Out of 76 times, MAC closed higher 53.95% 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 57.89% with an average market move of 1.98%.