MAT unable to break through key resistance level
Mattel Inc. (MAT) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, MAT ended Thursday at 9.06 gaining $0.52 (6.09%) on low volume, slightly underperforming the S&P 500 (6.24%). Closing within the previous day's range, prices missed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (MAT as at Mar 26, 2020):
Thursday's trading range has been $1.08 (12.63%), that's slightly above the last trading month's daily average range of $1.00. Weekly volatility is also higher, being slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently higher than usual for MAT.
Unable to break through the key technical resistance level at 9.28 (R1), the share closed below it after spiking up to 9.44 earlier during the day. The failure to close above the resistance could increase that levels significance going forward. After having been unable to move above 9.41 in the previous session, Mattel ran into sellers again around the same price level today, missing to move higher than 9.44. The last time this happened on March 19th, MAT lost -12.71% on the following trading day.
Although the market is experiencing a short-term uptrend, this might just be a correction, as both the medium and long-term trends are still bearish.
Among the three market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bounced off Technical Resistance R1" stand out. Its common bearish interpretation has been confirmed for Mattel. Out of 380 times, MAT closed lower 50.53% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the short side has been after 10 trading days, showing a win rate of 48.42% with an average market move of -0.48%.