MAT fails to close above 50-day moving average
Mattel Inc. (MAT) Technical Analysis Report for May 22, 2020 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, MAT finished the week 5.87% higher at 8.48 after gaining $0.10 (1.19%) today on low volume, outperforming the S&P 500 (0.24%) ahead of tomorrow's Memorial Day market holiday. Closing above Thursday's high at 8.40, Mattel confirmed its breakout through the prior session high after trading up to $0.12 above it intraday.
Daily Candlestick Chart (MAT as at May 22, 2020):
Friday's trading range has been $0.26 (3.12%), that's below the last trading month's daily average range of $0.43. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for MAT.
Two candlestick patterns are matching today's price action, the Bullish Short Candle and the White Candle which are both known as bullish patterns. The last time a Bullish Short Candle showed up on March 30th, MAT actually lost -3.19% on the following trading day.
The market managed to close back above the 20-day moving average at 8.47 for the first time since May 8th. After spiking up to 8.52 during the day, the share found resistance at the 50-day moving average at 8.50.
The stock shows weakness in the short-term (in accordance with its long-term downtrend) with only the medium-term trend still being bullish.
Selling could accelerate should prices move below the nearby swing low at 8.04 where further sell stops might get triggered. As prices are trading close to May's high at 8.99, upside momentum could speed up should MAT mark new highs for the month.
Among the nine market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bullish Short Candle" stand out. Although it is usually interpreted as bullish, it has actually shown to be bearish for Mattel. Out of 72 times, MAT closed lower 59.72% 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 nine trading days, showing a win rate of 48.61% with an average market move of -0.10%.