MAT closes above its opening price after recovering from early selling pressure
Mattel Inc. (MAT) Technical Analysis Report for Mar 15, 2019 | by Techniquant Editorial Team
MAT finished the week -0.14% lower at 14.47 after gaining $0.01 (0.07%) today, slightly underperforming the S&P 500 (0.5%). Trading up to $0.16 lower after the open, the market managed to reverse during the session as bulls took control ending the day above 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 (MAT as at Mar 15, 2019):
Friday's trading range has been $0.31 (2.15%), that's slightly below the last trading month's daily average range of $0.63. Weekly volatility is also lower, being way below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for MAT.
One bullish candlestick pattern matches today's price action, the Bullish Spinning Top.
Mattel managed to close back above the 20-day moving average at 14.40 for the first time since March 5th. When this moving average was crossed above the last time on February 1st, MAT gained 0.65% on the following trading day.
While the stock is currently in a short-term downtrend, this might just be a correction, as both the medium and long-term trends are still bullish.
Selling could accelerate should prices move below the nearby swing low at 14.20 where further sell stops might get activated. As prices are trading close to March's high at 15.19, upside momentum could speed up should the share mark new highs for the month.
Among the four market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Close to Swing Low" stand out. Although it is usually interpreted as neutral, it has actually shown to be bullish for Mattel. Out of 737 times, MAT closed higher 51.15% 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 three trading days, showing a win rate of 50.75% with an average market move of 0.06%.