MAT closes lower for the 2nd day in a row
Mattel Inc. (MAT) Technical Analysis Report for Aug 07, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, MAT finished the week 2.25% higher at 11.36 after losing $0.07 (-0.61%) today, underperforming the S&P 500 (0.06%). Ending the day with an indecisive close, neither buyers nor sellers were able to gain control during the session.
Daily Candlestick Chart (MAT as at Aug 07, 2020):
Friday's trading range has been $0.18 (1.58%), that's far below the last trading month's daily average range of $0.39. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for MAT.
Two candlestick patterns are matching today's price action, the Bearish Spinning Top and the Hanging Man which are both known as bearish patterns. The last time a Bearish Spinning Top showed up on July 31st, MAT actually gained 2.25% 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 11.66 where further buy stops might get activated. Further buying could move prices higher should the market test July's nearby high at 11.96.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Gap Down" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for Mattel. Out of 70 times, MAT closed higher 57.14% 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 10 trading days, showing a win rate of 58.57% with an average market move of 0.13%.