MAT dominated by bulls lifting the market higher throughout the day
Mattel Inc. (MAT) Technical Analysis Report for Jun 30, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, MAT finished the month 4.99% higher at 9.67 after edging higher $0.07 (0.73%) today on low volume, underperforming the S&P 500 (1.54%). The bulls were in full control today, moving the market higher throughout the whole session. Closing above Monday's high at 9.64, the market confirmed its breakout through the prior session high after trading up to $0.07 above it intraday.
Daily Candlestick Chart (MAT as at Jun 30, 2020):
Tuesday's trading range has been $0.22 (2.31%), that's below the last trading month's daily average range of $0.38. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently lower 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 June 8th, MAT actually lost -3.41% on the following trading day.
Mattel shows weakness in the short-term (in accordance with its long-term downtrend) with only the medium-term trend still being bullish.
Selling might accelerate should prices move below the nearby swing low at 9.23 where further sell stops could get activated. As prices are trading close to June's low at 9.01, downside momentum might speed up should the stock mark new lows for the month.
Among the eight market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bullish Short Candle" stand out. Though it is usually interpreted as bullish, it has actually shown to be bearish for Mattel. Out of 73 times, MAT closed lower 58.90% 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 47.95% with an average market move of 0.11%.