MATX closes above its opening price after recovering from early selling pressure
Matson Inc. (MATX) Technical Analysis Report for Jul 31, 2020 | by Techniquant Editorial Team
MATX finished the month 25.15% higher at 36.42 after gaining $0.31 (0.86%) today, slightly outperforming the Dow Comp. (0.52%). Trading up to $0.77 lower after the open, the stock managed to reverse during the session as bulls took control ending the day above its opening price. Closing within the previous day's range, prices missed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (MATX as at Jul 31, 2020):
Friday's trading range has been $1.16 (3.22%), that's slightly below the last trading month's daily average range of $1.44. Weekly volatility is also lower, being way below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for MATX. Prices continued to consolidate within a tight trading range between 34.78 and 36.56 where it has been caught now for the whole last trading week.
One bullish candlestick pattern matches today's price action, the Bullish Hikkake Pattern. The last time a Bullish Hikkake Pattern showed up on July 8th, MATX actually lost -2.84% on the following trading day.
Buyers managed to take out the key technical resistance level at 36.35 (now S1), which is likely to act as support going forward. The market ran into sellers again today around 36.43 for the third trading day in a row after having found sellers at 36.49 in the previous session and at 36.56 two days ago.
Although Matson is currently in a short-term downtrend, this might just be a correction, as both the medium and long-term trends are still bullish.
Buying could accelerate should prices move above the close-by swing high at 36.56 where further buy stops might get activated. As prices are trading close to July's high at 38.48, upside momentum could speed up should the share mark new highs for the month.
Among the eight market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Price broke through Technical Resistance R1" stand out. Though it is usually interpreted as bullish, it has actually shown to be bearish for Matson. Out of 262 times, MATX closed lower 53.05% 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 six trading days, showing a win rate of 52.29% with an average market move of -0.11%.