MAT tanks, losing $0.48 (-4.23%) within a single day
Mattel Inc. (MAT) Technical Analysis Report for Jul 27, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, MAT finished Monday at 10.86 tanking $0.48 (-4.23%), significantly underperforming the S&P 500 (0.74%). This is the biggest single-day loss in over a month. Closing below Friday's low at 11.02, the share confirmed its breakout through the previous session low after trading up to $0.32 below it intraday.
Daily Candlestick Chart (MAT as at Jul 27, 2020):
Monday's trading range has been $0.61 (5.44%), that's far above the last trading month's daily average range of $0.39. 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.
One bearish candlestick pattern matches today's price action, the Black Candle.
The stock closed back below the 200-day moving average at 11.03 for the first time since July 20th. When this moving average was crossed below the last time on March 6th, MAT lost -12.43% on the following trading day.
Although still in a long-term downtrend, the short and medium-term trends both turned bullish already.
Selling might accelerate should prices move below the nearby swing low at 10.46 where further sell stops could get activated.
Among the nine market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bearish Break through SMA 200" stand out. Its common bearish interpretation has been confirmed for Mattel. Out of 34 times, MAT closed lower 55.88% 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 67.65% with an average market move of -2.48%.