MC finds support at 20-day moving average
Moelis & Company Class A (MC) Technical Analysis Report for Aug 07, 2020 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, MC ended the week 4.6% higher at 31.16 after gaining $0.08 (0.26%) today, slightly outperforming the S&P 500 (0.06%). Trading up to $0.42 lower after the open, the market 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 (MC as at Aug 07, 2020):
Friday's trading range has been $1.05 (3.43%), that's slightly above the last trading month's daily average range of $0.92. 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 lower than usual for MC.
In a volatile session, prices traded above the previous day's high as well as below the prior day's low, forming a bullish Outside Bar. Additionally, two candlestick patterns are matching today's price action, the White Candle which is known as bullish pattern and one bearish pattern, the Last Engulfing Top Pattern. The last time a Last Engulfing Top Pattern showed up on July 20th, MC actually gained 1.69% on the following trading day.
After trading as low as 30.19 during the day, the stock found support at the 20-day moving average at 30.57. After having been unable to move above 31.20 in the previous session, the share ran into sellers again around the same price level today, missing to move higher than 31.24.
Moelis & shows strength in the short-term supported by its long-term uptrend with only the medium-term trend being bearish.
Further buying could move prices higher should the market test July's close-by high at 32.13.
Among the 10 market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Last Engulfing Top Pattern" stand out. Although it is usually interpreted as bearish, it has actually shown to be bullish for Moelis &. Out of 56 times, MC closed higher 55.36% 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 10 trading days, showing a win rate of 57.14% with an average market move of 1.41%.