MAS runs into sellers again around 58.50
Masco Corporation (MAS) Technical Analysis Report for Sep 18, 2020 | by Techniquant Editorial Team
MAS finished the week -1.45% lower at 57.69 after gaining $0.14 (0.24%) today on high volume, significantly outperforming the S&P 500 (-1.12%). Closing within the previous day's range, prices missed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (MAS as at Sep 18, 2020):
Friday's trading range has been $1.29 (2.25%), that's slightly above the last trading month's daily average range of $1.24. Weekly volatility is also higher, being slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for MAS.
Unable to break through the key technical resistance level at 58.15 (R1), Masco closed below it after spiking up to 58.50 earlier during the day. The failure to close above the resistance might increase that levels significance going forward. When prices bounced off a significant resistance level the last time on Wednesday, MAS lost -2.57% on the following trading day. After having been unable to move above 58.50 in the previous session, the stock ran into sellers again around the same price level today, missing to move higher than 58.50.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Selling could speed up should prices move below the close-by swing low at 56.83 where further sell stops might get activated.
Among the three market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "High close to prior High" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for Masco. Out of 578 times, MAS closed higher 50.87% 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 58.65% with an average market move of 1.23%.