MAC crashes -6.5% on high volume
Macerich Company (MAC) Technical Analysis Report for Jul 31, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, MAC finished the month -14.94% lower at 7.63 after tanking $0.53 (-6.5%) today on high volume, notably underperforming the S&P 500 (0.77%). This is the biggest single-day loss in over a month. Today's close at 7.63 marks the lowest recorded closing price since June 2nd. The bears were in full control today, moving the market lower throughout the whole session. Closing below Thursday's low at 8.04, the market confirmed its breakout through the prior session low after trading up to $0.42 below it intraday.
Daily Candlestick Chart (MAC as at Jul 31, 2020):
Friday's trading range has been $0.54 (6.67%), that's slightly above the last trading month's daily average range of $0.48. Things look different on the weekly timeframe, where the market's trading range of the last week has been 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 Bullish Hikkake Pattern which is known as bullish pattern and one bearish pattern, the Black Candle. The last time a Bullish Hikkake Pattern showed up on May 22nd, MAC gained 7.19% on the following trading day.
The stock closed back below the 100-day moving average at 7.99.
The share shows weakness in the short-term (in accordance with its long-term downtrend) with only the medium-term trend still being bullish.
Selling might accelerate should prices move below the close-by swing low at 7.54 where further sell stops could get activated. Further selling might move prices lower should the market test June's nearby low at 6.75.
Among the 11 market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bearish Break through SMA 100" stand out. Although it is usually interpreted as bearish, it has actually shown to be bullish for Macerich. Out of 62 times, MAC closed higher 53.23% 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 61.29% with an average market move of 1.12%.