MAS finds buyers around 58.91 for the third day in a row
Masco Corporation (MAS) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, MAS ended Wednesday at 59.07 losing $0.08 (-0.14%) on high volume, but still slightly outperforming the S&P 500 (-0.46%). Trading $0.65 higher after the open, the stock was unable to hold its gains as the bears took control ending the day below its opening price. 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 Sep 16, 2020):
Wednesday's trading range has been $1.25 (2.1%), that's slightly above the last trading month's daily average range of $1.17. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for MAS. Prices continued to consolidate within a tight trading range between 58.82 and 60.16 where it has been caught now for the last three trading days.
In a volatile session, prices traded above the prior day's high as well as below the previous day's low, forming a bearish Outside Bar.
Unable to break through the key technical resistance level at 60.10 (R1), the market closed below it after spiking up to 60.16 earlier during the day. The failure to close above the resistance could increase that levels importance going forward. Masco found buyers again today around 58.91 for the third trading day in a row after having found demand at 58.99 in the prior session and at 58.82 two days ago. The last time this happened on August 31st, MAS gained 1.82% on the following trading day.
Although the share is currently in a short-term downtrend, this might just be a correction, as both the medium and long-term trends are still bullish.
Among the nine market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Close near low of period" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for Masco. Out of 520 times, MAS closed higher 52.88% 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 61.73% with an average market move of 1.75%.