MCO pushes through Thursday's high
Moody's Corporation (MCO) Technical Analysis Report for Feb 14, 2020 | by Techniquant Editorial Team
MCO finished the week 3.86% higher at 277.83 after surging $5.06 (1.86%) today on high volume, notably outperforming the S&P 500 (0.18%) ahead of tomorrow's Presidents' Day market holiday. Today's close at 277.83 marks the highest recorded closing price ever. The bulls were in full control today, moving the market higher throughout the whole session. Closing above Thursday's high at 274.41, Moody's confirmed its breakout through the previous session high after trading up to $3.59 above it intraday.
Daily Candlestick Chart (MCO as at Feb 14, 2020):
Friday's trading range has been $5.00 (1.83%), that's slightly above the last trading month's daily average range of $4.73. Weekly volatility is also higher, being way above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for MCO.
Two candlestick patterns are matching today's price action, the White Candle which is known as bullish pattern and one bearish pattern, the Bearish Hikkake Pattern. The last time a White Candle showed up on Monday, MCO gained 0.95% on the following trading day.
Crossing above the upper Bollinger Band for the first time since Wednesday, prices have shown unusually strong upward momentum in the short-term. This might either indicate a potential buying climax after which prices could head back down towards the mean of the Bollinger Bands at 263.59 or signal the beginning of a strong momentum breakout leading to even higher prices.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Among the 11 market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "White Candle" stand out. Its common bullish interpretation has been confirmed for Moody's. Out of 627 times, MCO closed higher 53.91% 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 62.68% with an average market move of 1.12%.