MATX rallies 2.76% closing $1.08 higher
Matson Inc. (MATX) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team
Moving higher for the 4th day in a row, MATX ended Wednesday at 40.18 surging $1.08 (2.76%), notably outperforming the Dow Comp. (0.17%). This is the biggest single-day gain in over three weeks. The bulls were in full control today, moving the market higher throughout the whole session. Closing above Tuesday's high at 39.46, the share confirmed its breakout through the previous session high after trading up to $1.00 above it intraday.
Daily Candlestick Chart (MATX as at Sep 16, 2020):
Wednesday's trading range has been $1.34 (3.43%), that's above the last trading month's daily average range of $1.05. Weekly volatility is also higher, being slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently lower than usual for MATX.
Two candlestick patterns are matching today's price action, the Bullish Belt-hold and the White Candle which are both known as bullish patterns. The last time a White Candle showed up on September 2nd, MATX actually lost -3.19% on the following trading day.
The market managed to close back above the 20-day moving average at 40.15 for the first time since September 2nd.
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.
With prices trading close to this year's high at 42.08, upside momentum could accelerate should the stock be able to break out to new highs for the year. As prices are trading close to September's high at 41.67, upside momentum might speed up should MATX mark new highs for the month.
Among the eight market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Strong Up Move" stand out. Though it is usually interpreted as bullish, it has actually shown to be bearish for Matson. Out of 199 times, MATX closed lower 57.79% 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 51.76% with an average market move of 0.06%.