MAT dominated by bears dragging the market lower throughout the day
Mattel Inc. (MAT) Technical Analysis Report for Aug 15, 2019 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, MAT ended Thursday at 10.74 losing $0.33 (-2.98%), significantly underperforming the S&P 500 (0.25%). Today's close at 10.74 marks the lowest recorded closing price since June 26th. The bears were in full control today, moving the market lower throughout the whole session. Closing below Wednesday's low at 10.94, the stock confirmed its breakout through the previous session low after trading up to $0.31 below it intraday.
Daily Candlestick Chart (MAT as at Aug 15, 2019):
Thursday's trading range has been $0.55 (4.92%), that's slightly below the last trading month's daily average range of $0.65. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently higher than usual for MAT.
Two candlestick patterns are matching today's price action, the Bullish Hikkake Pattern which is known as bullish pattern and one bearish pattern, the Black Candle. The last time a Black Candle showed up on Monday, MAT actually gained 4.64% on the following trading day.
Prices broke below the key technical support level at 10.76 (now R1), which is likely to act as resistance going forward.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Trading close to June's low at 9.59 we might see further downside momentum if potential sell stops at the level get activated.
Among the nine market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Decisive Down Move" stand out. While it is usually interpreted as bearish, it has actually shown to be bullish for Mattel. Out of 309 times, MAT closed higher 56.31% 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 53.72% with an average market move of 0.70%.