MAS closes higher for the 4th day in a row
Masco Corporation (MAS) Technical Analysis Report for Aug 03, 2020 | by Techniquant Editorial Team
Moving higher for the 4th day in a row, MAS finished Monday at 57.72 gaining $0.56 (0.98%) on low volume, slightly outperforming the S&P 500 (0.72%). Today's close at 57.72 marks the highest recorded closing price ever. Trading up to $0.25 lower after the open, the stock managed to reverse during the session as bulls took control ending the day above its opening price. The last time this happened on July 21st, MAS gained 2.32% on the following trading day.
Daily Candlestick Chart (MAS as at Aug 03, 2020):
Monday's trading range has been $0.74 (1.29%), that's below the last trading month's daily average range of $1.14. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently higher than usual for MAS.
One bearish candlestick pattern matches today's price action, the Bearish Hikkake Pattern.
Unable to break through the key technical resistance level at 57.85 (R1), the market closed below it after spiking up to 57.96 earlier during the day. The failure to close above the resistance might increase that levels significance going forward.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "52 Week High" stand out. While it is usually interpreted as bullish, it has actually shown to be bearish for Masco. Out of 168 times, MAS closed lower 52.98% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the short side has been after 10 trading days, showing a win rate of 60.12% with an average market move of -1.17%.