MAR closes lower for the 2nd day in a row
Marriott International (MAR) Technical Analysis Report for Jul 31, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, MAR ended the month -2.23% lower at 83.82 after losing $1.69 (-1.98%) today, notably underperforming the Nasdaq 100 (1.78%). Today's close at 83.82 marks the lowest recorded closing price since June 26th. Ending the day with an indecisive close, neither buyers nor sellers were able to gain control during the session.
Daily Candlestick Chart (MAR as at Jul 31, 2020):
Friday's trading range has been $2.53 (2.99%), that's slightly below the last trading month's daily average range of $2.76. 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.
One bullish candlestick pattern matches today's price action, the Hammer. The last time a Hammer showed up on January 6th, MAR actually lost -1.63% on the following trading day.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Further selling might move prices lower should the market test June's nearby low at 80.26.
Among the two market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "2 Consecutive Lower Closes" stand out. While it is usually interpreted as bearish, it has actually shown to be bullish for Marriott International. Out of 301 times, MAR closed higher 54.15% 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 59.14% with an average market move of 0.87%.