MATX closes within previous day's range after lackluster session
Matson Inc. (MATX) Technical Analysis Report for Feb 14, 2020 | by Techniquant Editorial Team
MATX ended the week 0.41% higher at 36.45 after gaining $0.15 (0.41%) today, outperforming the Dow Comp. (-0.19%) ahead of tomorrow's Presidents' Day market holiday. 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 (MATX as at Feb 14, 2020):
Friday's trading range has been $0.66 (1.81%), that's below the last trading month's daily average range of $0.87. 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 MATX.
Three candlestick patterns are matching today's price action, the Southern Doji which is known as bullish pattern, one bearish pattern, the Gravestone Doji and one neutral pattern, the Doji. The last time a Gravestone Doji showed up on November 7, 2019, MATX lost -3.26% on the following trading day.
Unable to break through the key technical resistance level at 36.63 (R1), the share closed below it after spiking up to 36.93 earlier during the day. The failure to close above the resistance could increase that levels significance going forward.
Though the stock is experiencing a short-term uptrend, this might just be a correction, as both the medium and long-term trends are still bearish.
Selling could speed up should prices move below the nearby swing low at 36.10 where further sell stops might get triggered. With prices trading close to this year's low at 35.67, downside momentum could accelerate should the market break out to new lows for the year. As prices are trading close to February's low at 35.76, downside momentum might speed up should Matson mark new lows for the month.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Gravestone Doji" stand out. Its common bearish interpretation has been confirmed for Matson. Out of 41 times, MATX closed lower 51.22% 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 58.54% with an average market move of -1.81%.