MAT closes above its opening price after recovering from early selling pressure
Mattel Inc. (MAT) Technical Analysis Report for Jul 30, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, MAT ended Thursday at 11.23 losing $0.07 (-0.62%), slightly underperforming the S&P 500 (-0.38%). Trading up to $0.10 lower after the open, Mattel managed to reverse during the session as bulls took control ending the day above its opening price. Closing within the previous day's range, prices missed to decisively move beyond the prior day's trading range in a lackluster session.
Daily Candlestick Chart (MAT as at Jul 30, 2020):
Thursday's trading range has been $0.24 (2.16%), that's below the last trading month's daily average range of $0.40. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly above 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.
After trading as low as 11.01 during the day, the stock found support at the 200-day moving average at 11.03. The last time this happened on July 24th, MAT actually lost -4.23% on the following trading day. Prices are trading close to the key technical resistance level at 11.50 (R1).
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Buying could accelerate should prices move above the close-by swing high at 11.50 where further buy stops might get activated.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bullish Short Candle" stand out. While 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 47.22% with an average market move of 0.22%.