MATX closes within prior day's range after lackluster session
Matson Inc. (MATX) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team
MATX finished Thursday at 32.36 gaining $2.04 (6.73%), slightly outperforming the Dow Comp. (6.26%). The bulls were in full control today, moving the market higher throughout the whole session. 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 (MATX as at Mar 26, 2020):
Thursday's trading range has been $1.83 (5.97%), that's below the last trading month's daily average range of $2.74. Things look different on the weekly timeframe, where the market's trading range of the last week has been above the market's average weekly trading range. The longer-term, monthly volatility is currently higher than usual for MATX. Prices continued to consolidate within a tight trading range between 29.51 and 32.50 where it has been caught now for the last three trading days.
During the whole day, prices traded within the previous day's range, unable to trade above the prior day's high or below the previous day's low forming an Inside Bar. Additionally, one bullish candlestick pattern matches today's price action, the White Candle.
The stock managed to close back above the 20-day moving average at 31.50 for the first time since March 19th. Prices are trading close to the key technical resistance level at 33.86 (R1). Matson ran into sellers again today around 32.48 for the third trading day in a row after having found sellers at 32.50 in the prior session and at 32.24 two days ago. The last time this happened on March 11th, MATX lost -11.89% on the following trading day.
Though the market is experiencing a short-term uptrend, this could just be a correction, as both the medium and long-term trends are still bearish.
Buying might accelerate should prices move above the close-by swing high at 32.50 where further buy stops could get triggered.
Among the nine market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "High close to previous two Highs" stand out. Its common bearish interpretation has been confirmed for Matson. Out of 158 times, MATX closed lower 55.70% 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 51.90% with an average market move of -0.37%.