MAT closes within previous day's range
Mattel Inc. (MAT) Technical Analysis Report for Jul 13, 2020 | by Techniquant Editorial Team
MAT ended Monday at 10.32 losing $0.16 (-1.53%) on low volume, underperforming the S&P 500 (-0.94%). Trading $0.13 higher after the open, the market was unable to hold its gains as the bears took control ending the day below 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 Jul 13, 2020):
Monday's trading range has been $0.33 (3.14%), that's slightly below the last trading month's daily average range of $0.37. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for MAT.
One bearish candlestick pattern matches today's price action, the Black Candle. The last time a Black Candle showed up on June 24th, MAT lost -1.36% on the following trading day.
Prices are trading close to the key technical support level at 10.12 (S1).
Although still in a long-term downtrend, the short and medium-term trends both turned bullish already.
Selling might speed up should prices move below the close-by swing low at 9.93 where further sell stops could get activated. Further buying might move prices higher should the market test June's nearby high at 10.97.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Close near low of period" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for Mattel. Out of 546 times, MAT closed higher 52.38% 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 eight trading days, showing a win rate of 53.48% with an average market move of 0.38%.