MATX breaks below key technical support level
Matson Inc. (MATX) Technical Analysis Report for Nov 09, 2018 | by Techniquant Editorial Team
MATX finished the week 12.7% higher at 40.46 after losing $0.38 (-0.93%) today, slightly underperforming the Dow Comp. (-0.92%). Closing within the prior day's range, prices failed to decisively move beyond the previous day's trading range.
Daily Candlestick Chart (MATX as at Nov 09, 2018):
Friday's trading range has been $1.00 (2.46%), that's slightly below the last trading month's daily average range of $1.33. Things look different on the weekly timeframe, where the market's trading range of the last week has been way above the market's average weekly trading range. The longer-term, monthly volatility is currently notably higher than usual for MATX. Prices continued to consolidate within a tight trading range between 39.51 and 41.39 where it has been caught now for the last three trading days.
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. Additionally, one bearish candlestick pattern matches today's price action, the Bearish Spinning Top.
Prices broke below the key technical support level at 40.60 (now R1), which is likely to act as resistance going forward. The last time this happened on October 24th, MATX actually gained 2.46% on the following trading day. After having been unable to move lower than 40.16 in the prior session, the market found buyers again around the same price level today at 39.99.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bearish Outside Bar" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for Matson. Out of 107 times, MATX closed higher 60.75% 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 55.14% with an average market move of 0.04%.