MBT unable to break through key resistance level
Mobile TeleSystems PJSC (MBT) Technical Analysis Report for Feb 14, 2020 | by Techniquant Editorial Team
MBT ended the week 2.89% higher at 10.67 after edging higher $0.02 (0.19%) today, slightly outperforming the S&P 500 (0.18%) ahead of tomorrow's Presidents' Day market holiday. Trading $0.06 higher after the open, the market was unable to hold its gains as the bears took control ending the day below its opening price. Closing within the prior day's range, prices failed to decisively move beyond the previous day's trading range in a lackluster session.
Daily Candlestick Chart (MBT as at Feb 14, 2020):
Friday's trading range has been $0.12 (1.12%), that's below the last trading month's daily average range of $0.15. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for MBT. Prices continued to consolidate within a tight trading range between 10.60 and 10.79 where it has been caught now for the last three trading days.
Unable to break through the key technical resistance level at 10.76 (R1), Mobile TeleSystems closed below it after spiking up to 10.76 earlier during the day. The failure to close above the resistance could increase that levels significance going forward. When prices bounced off a significant resistance level the last time on January 30th, MBT lost -2.86% on the following trading day.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Buying might accelerate should prices move above the nearby swing high at 10.79 where further buy stops could get activated. Selling might speed up should prices move below the close-by swing low at 10.60 where further sell stops could get triggered. With prices trading close to this year's high at 10.82, upside momentum might accelerate should the stock be able to break out to new highs for the year.
Among the four market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Close to Swing Low" stand out. While it is usually interpreted as neutral, it has actually shown to be bullish for Mobile TeleSystems. Out of 734 times, MBT closed higher 51.77% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the long side has been after five trading days, showing a win rate of 53.13% with an average market move of 0.04%.