MAS closes below its opening price unable to hold early session gains
Masco Corporation (MAS) Technical Analysis Report for Dec 07, 2018 | by Techniquant Editorial Team
Moving lower for the 3rd day in a row, MAS finished the week -4.92% lower at 30.13 after losing $0.36 (-1.18%) today, but still strongly outperforming the S&P 500 (-2.33%) following today's NFP report. Today's close at 30.13 marks the lowest recorded closing price since October 31st. Trading $0.64 higher after the open, the share was unable to hold its gains as the bears took control ending the day below its opening price. The last time this happened on November 27th, MAS actually gained 2.93% on the following trading day. Closing within the prior day's range, prices failed to decisively move beyond the previous day's trading range.
Daily Candlestick Chart (MAS as at Dec 07, 2018):
Friday's trading range has been $1.23 (4.03%), that's above the last trading month's daily average range of $0.91. Weekly volatility is also higher, being way above the market's average weekly trading range. The longer-term, monthly volatility is currently lower than usual for MAS.
One bullish candlestick pattern matches today's price action, the Last Engulfing Bottom Pattern.
After spiking up to 31.19 during the day, Masco found resistance at the 20-day moving average at 31.08. After having been unable to move lower than 29.89 in the prior session, the stock found buyers again around the same price level today at 29.96.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Selling could speed up should prices move below the nearby swing low at 29.89 where further sell stops might get activated.
Among the 10 market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Last Engulfing Bottom Pattern" stand out. Its common bullish interpretation has been confirmed for Masco. Out of 56 times, MAS closed higher 58.93% 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 58.93% with an average market move of -0.58%.