MAT loses $0.29 (-2.49%) after posting strong earnings
Mattel Inc. (MAT) Technical Analysis Report for Jul 24, 2020 | by Techniquant Editorial Team
MAT finished the week 7.39% higher at 11.34 after losing $0.29 (-2.49%) today on high volume, significantly underperforming the S&P 500 (-0.62%) following Thursday's earnings report. Closing below Thursday's low at 11.44, the stock confirmed its breakout through the previous session low after trading up to $0.42 below it intraday.
Daily Candlestick Chart (MAT as at Jul 24, 2020):
MAT reported earnings of $-0.26 per share after Thursday's market close. With analysts having expected an EPS of $-0.38, Mattel Inc. beat market expectations by 31.6%. The company's last earnings report was released on May 5, 2020, when Mattel Inc. reported earnings of $-0.56 per share missing market expectations by -33.3%.
Friday's trading range has been $0.94 (7.87%), that's far above the last trading month's daily average range of $0.37. Weekly volatility is also higher, being above the market's average weekly trading range. The longer-term, monthly volatility is currently higher than usual for MAT.
In a volatile session, prices traded above the prior day's high as well as below the previous day's low, forming a bearish Outside Bar. The last time this happened on May 28th, MAT lost -2.64% on the following trading day. In spite of a strong opening the share closed below the prior day's open and close, forming a bearish Engulfing Candle. Additionally, one bearish candlestick pattern matches today's price action, the Black Candle.
After trading as low as 11.02 during the day, the market found support at the 200-day moving average at 11.03.
Crossing below the upper Bollinger Band, prices have lost at least some of their upward momentum in the short-term and could now be heading back down towards the mean of the Bollinger Bands at 10.45.
Although still in a long-term downtrend, the short and medium-term trends both turned bullish already.
Among the eight market conditions that our pattern recognition engine identified today, the statistics for the Stock Earning Report based market condition "Trading Day post Earnings Report" stand out. Though it is usually interpreted as neutral, it has actually shown to be bullish for Mattel. Out of 31 times, MAT closed higher 67.74% 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 six trading days, showing a win rate of 48.39% with an average market move of -0.09%.