MAS unable to break through key resistance level
Masco Corporation (MAS) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, MAS finished Thursday at 35.70 gaining $1.58 (4.63%), strongly underperforming the S&P 500 (6.24%). The bulls were in full control today, moving the market higher throughout the whole session. Closing above Wednesday's high at 35.35, the market confirmed its breakout through the prior session high after trading up to $0.71 above it intraday.
Daily Candlestick Chart (MAS as at Mar 26, 2020):
Thursday's trading range has been $1.93 (5.65%), that's below the last trading month's daily average range of $2.61. Things look different on the weekly timeframe, where the market's trading range of the last week has been way above the market's average weekly trading range. The longer-term, monthly volatility is currently significantly higher than usual for MAS.
Two candlestick patterns are matching today's price action, the Bullish Short Candle and the White Candle which are both known as bullish patterns.
Unable to break through the key technical resistance level at 35.86 (R1), the share closed below it after spiking up to 36.06 earlier during the day. The failure to close above the resistance could increase that levels significance going forward. When prices bounced off a significant resistance level the last time on March 16th, MAS actually gained 3.56% on the following trading day.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Among the eight market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Decisive Up Move" stand out. Its common bullish interpretation has been confirmed for Masco. Out of 327 times, MAS closed higher 53.52% 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 55.66% with an average market move of 0.75%.