MCO closes higher for the 3rd day in a row
Moody's Corporation (MCO) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, MCO ended Thursday at 224.33 gaining $17.20 (8.3%) on low volume, significantly 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 217.91, the share confirmed its breakout through the previous session high after trading up to $9.56 above it intraday.
Daily Candlestick Chart (MCO as at Mar 26, 2020):
Thursday's trading range has been $17.97 (8.57%), that's slightly above the last trading month's daily average range of $16.98. Weekly volatility is also higher, being way above the market's average weekly trading range. The longer-term, monthly volatility is currently notably higher than usual for MCO.
One bullish candlestick pattern matches today's price action, the White Candle.
The market managed to close above the 200-day moving average at 222.88 for the first time since March 10th. When this moving average was crossed above the last time on March 10th, MCO actually lost -7.18% on the following trading day. Prices are trading close to the key technical resistance level at 239.52 (R1).
The stock shows strength in the short-term supported by its long-term uptrend with only the medium-term trend being bearish.
Among the nine market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bullish Break through SMA 20" stand out. Its common bullish interpretation has been confirmed for Moody's. Out of 133 times, MCO closed higher 52.63% 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 65.41% with an average market move of 1.17%.