MBT pushes through key technical resistance level
Mobile TeleSystems PJSC (MBT) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team
Moving higher for the 4th day in a row, MBT finished Thursday at 7.74 gaining $0.66 (9.32%) on high volume, strongly outperforming the S&P 500 (6.24%). The bulls were in full control today, moving the market higher throughout the whole session. Closing above Wednesday's high at 7.34, Mobile TeleSystems confirmed its breakout through the prior session high after trading up to $0.44 above it intraday.
Daily Candlestick Chart (MBT as at Mar 26, 2020):
Thursday's trading range has been $0.78 (11.14%), that's far above the last trading month's daily average range of $0.48. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently significantly higher than usual for MBT.
One bullish candlestick pattern matches today's price action, the White Candle.
Buyers managed to take out the key technical resistance level at 7.22 (now S1), which is likely to act as support going forward. The last time this happened on March 17th, MBT actually lost -14.30% on the following trading day. Unable to break through the key technical resistance level at 7.77 (R1), the stock closed below it after spiking up to 7.78 earlier during the day. The failure to close above the resistance might increase that levels significance going forward.
Though the share is experiencing a short-term uptrend, this could just be a correction, as both the medium and long-term trends are still bearish.
Among the eight market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "4 Consecutive Higher Closes" stand out. Although it is usually interpreted as bullish, it has actually shown to be bearish for Mobile TeleSystems. Out of 84 times, MBT closed lower 54.76% 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 59.52% with an average market move of -1.03%.