MAC ends the day on a bearish note closing near the low of the day
Macerich Company (MAC) Technical Analysis Report for May 29, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, MAC finished the month -8.84% lower at 6.81 after losing $0.43 (-5.94%) today, notably underperforming the S&P 500 (0.48%). Trading $0.13 higher after the open, Macerich was unable to hold its gains as the bears took control ending the day below its opening price. Ending with a weak close near the low of the day sets a bearish note for the next session.
Daily Candlestick Chart (MAC as at May 29, 2020):
Friday's trading range has been $0.36 (5.12%), that's far below the last trading month's daily average range of $0.62. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for MAC.
Two candlestick patterns are matching today's price action, the Bearish Short Candle and the Black Candle which are both known as bearish patterns.
The stock closed back below the 50-day moving average at 6.88 for the first time since May 22nd. When this moving average was crossed below the last time on May 22nd, MAC actually gained 7.19% on the following trading day.
While still in a long-term downtrend, the short and medium-term trends both turned bullish already.
As prices are trading close to May's low at 5.61, downside momentum could accelerate should the market mark new lows for the month.
Among the nine 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 77 times, MAC closed higher 54.55% 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 58.44% with an average market move of 2.14%.