MAT closes above its opening price after recovering from early selling pressure
Mattel Inc. (MAT) Technical Analysis Report for Jun 14, 2019 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, MAT finished the week 9.02% higher at 11.85 after gaining $0.12 (1.02%) today, notably outperforming the S&P 500 (-0.16%). Today's close at 11.85 marks the highest recorded closing price since May 3rd. Trading up to $0.21 lower after the open, the stock 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 Jun 14, 2019):
Friday's trading range has been $0.47 (4.05%), that's slightly below the last trading month's daily average range of $0.48. 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 slightly lower than usual for MAT. Prices continued to consolidate within a tight trading range between 11.20 and 11.92 where it has been caught now for the last three trading days.
During the whole day, prices traded within the prior day's range, unable to trade above the previous day's high or below the prior day's low forming an Inside Bar. Additionally, one bullish candlestick pattern matches today's price action, the White Candle. The last time a White Candle showed up on June 4th, MAT gained 1.95% on the following trading day.
Mattel managed to close above the 50-day moving average at 11.78 for the first time since March 20th. Prices are trading close to the key technical resistance level at 12.07 (R1). The market ran into sellers again today around 11.86 for the third trading day in a row after having found sellers at 11.92 in the previous session and at 11.88 two days ago.
With another close above the upper Bollinger Band, prices are confirming their strong upward momentum in the short-term. A drop back into the Bollinger Band on the next trading day while could signal a potential change in momentum that might lead to a correction back down towards the center of the Bollinger Bands at 10.88.
Though the share is experiencing a short-term uptrend, this could just be a correction, as both the medium and long-term trends are still bearish.
Buying might speed up should prices move above the nearby swing high at 11.92 where further buy stops could get activated. Further buying might move prices higher should the market test May's close-by high at 12.61.
Among the 10 market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "High close to prior two Highs" stand out. Although it is usually interpreted as bearish, it has actually shown to be bullish for Mattel. Out of 143 times, MAT closed higher 56.64% 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 six trading days, showing a win rate of 51.75% with an average market move of 0.11%.