MCO stuck within tight trading range
Moody's Corporation (MCO) Technical Analysis Report for Jun 30, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, MCO ended the month 2.74% higher at 274.73 after gaining $5.62 (2.09%) today on high volume, outperforming the S&P 500 (1.54%). The bulls were in full control today, moving the market higher throughout the whole session. Closing above Monday's high at 271.99, the market confirmed its breakout through the prior session high after trading up to $3.52 above it intraday.
Daily Candlestick Chart (MCO as at Jun 30, 2020):
Tuesday's trading range has been $7.23 (2.68%), that's slightly below the last trading month's daily average range of $7.74. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for MCO. Prices continued to consolidate within a tight trading range between 265.51 and 275.51 where it has been caught now for the last three trading days.
One bullish candlestick pattern matches today's price action, the White Candle.
Moody's managed to close back above the 20-day moving average at 273.76. When this moving average was crossed above the last time on June 25th, MCO actually lost -2.60% on the following trading day.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Buying might speed up should prices move above the close-by swing high at 276.47 where further buy stops could get triggered. With prices trading close to this year's high at 287.25, upside momentum might accelerate should the stock be able to break out to new highs for the year. As prices are trading close to June's high at 283.64, upside momentum could speed up should the share mark new highs for the month.
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 135 times, MCO closed higher 51.85% 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 65.93% with an average market move of 1.34%.