MAR closes lower for the 2nd day in a row
Marriott International (MAR) Technical Analysis Report for May 22, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, MAR finished the week 14.15% higher at 91.05 after edging lower $0.30 (-0.33%) today on low volume, underperforming the Nasdaq 100 (0.38%) ahead of tomorrow's Memorial Day market holiday. 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 (MAR as at May 22, 2020):
Friday's trading range has been $2.71 (2.94%), that's far below the last trading month's daily average range of $4.54. 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 MAR. Prices continued to consolidate within a tight trading range between 89.54 and 93.11 where it has been caught now for the last three trading days.
Even with a strong opening the market closed below the previous day's open and close, forming a bearish Engulfing Candle. The last time this candlestick pattern showed up on March 26th, MAR lost -4.78% on the following trading day.
The stock found buyers again today around 89.54 for the third trading day in a row after having found demand at 90.27 in the prior session and at 90.27 two days ago.
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.
Buying might speed up should prices move above the nearby swing high at 93.11 where further buy stops could get activated. Further buying might move prices higher should the market test April's close-by high at 97.45.
Among the four market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "2 Consecutive Lower Closes" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for Marriott International. Out of 300 times, MAR closed higher 54.67% 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 59.67% with an average market move of 0.89%.