MATX runs into sellers around 26.96 for the forth day in a row
Matson Inc. (MATX) Technical Analysis Report for May 22, 2020 | by Techniquant Editorial Team
MATX finished the week 6.46% higher at 26.53 after losing $0.15 (-0.56%) today, underperforming the Dow Comp. (0.26%) ahead of tomorrow's Memorial Day market holiday. 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 May 22, 2020):
Friday's trading range has been $1.02 (3.8%), that's slightly below the last trading month's daily average range of $1.34. Weekly volatility is also lower, being way below 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 25.94 and 27.45 where it has been caught now for the whole last trading week.
Regardless of a strong opening the share closed below the prior day's open and close, forming a bearish Engulfing Candle. The last time this candlestick pattern showed up on March 20th, MATX lost -6.79% on the following trading day.
Prices are trading close to the key technical resistance level at 27.32 (R1). Matson was sold again around 26.96 after having seen highs at 26.97, 27.09 and 27.15 in the last three trading sessions. Obviously there is something going on at that level.
The market shows weakness in the short-term (in accordance with its long-term downtrend) with only the medium-term trend still being bullish.
Buying could accelerate should prices move above the close-by swing high at 27.45 where further buy stops might get triggered.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bearish Engulfing Candle" stand out. While it is usually interpreted as bearish, it has actually shown to be bullish for Matson. Out of 88 times, MATX closed higher 57.95% of the time on the next trading day after the market condition occurred.