MAT still stuck within tight trading range
Mattel Inc. (MAT) Technical Analysis Report for Aug 04, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, MAT finished Tuesday at 11.37 edging higher $0.01 (0.09%) on low volume, slightly underperforming the S&P 500 (0.36%). Trading $0.12 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 previous day's range, prices failed to decisively move beyond the prior day's trading range in a lackluster session.
Daily Candlestick Chart (MAT as at Aug 04, 2020):
Tuesday's trading range has been $0.21 (1.85%), that's far below the last trading month's daily average range of $0.41. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for MAT. Prices continued to consolidate within a tight trading range between 10.91 and 11.50 where it has been caught now for the whole last trading week.
Three candlestick patterns are matching today's price action, the Bearish Doji Star and the Northern Doji which are both known as bearish patterns and one neutral pattern, the Doji. The last time a Doji showed up on July 9th, MAT gained 3.46% on the following trading day.
Unable to break through the key technical resistance level at 11.50 (R1), the share closed below it after spiking up to 11.50 earlier during the day. The failure to close above the resistance might increase that levels importance going forward.
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 triggered. Further buying could move prices higher should the market test July's nearby high at 11.96.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bounced off Technical Resistance R1" stand out. Its common bearish interpretation has been confirmed for Mattel. Out of 373 times, MAT closed lower 51.74% 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 50.67% with an average market move of -0.66%.