MDB closes lower for the 2nd day in a row
MongoDB Inc. (MDB) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, MDB ended Thursday at 133.11 edging lower $1.19 (-0.89%), strongly underperforming the S&P 500 (6.24%). Trading $7.15 higher after the open, the market was unable to hold its gains as the bears took control ending the day below its opening price. Closing within the prior day's range, prices failed to decisively move beyond the previous day's trading range.
Daily Candlestick Chart (MDB as at Mar 26, 2020):
Thursday's trading range has been $12.10 (8.9%), that's slightly below the last trading month's daily average range of $13.94. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for MDB. Prices continued to consolidate within a tight trading range between 130.26 and 145.48 where it has been caught now for the last three trading days.
During the whole day, prices traded within the prior day's range, unable to trade above the previous day's high or below the prior day's low forming an Inside Bar.
After trading down to 131.05 earlier during the day, the share bounced off the key technical support level at 132.90 (S1). The failure to close below the support might increase that levels significance as support going forward. Prices are trading close to the key technical resistance level at 144.80 (R1). The stock found buyers again today around 131.05 for the third trading day in a row after having found demand at 130.26 in the previous session and at 132.01 two days ago. The last time this happened on March 18th, MDB gained 15.56% on the following trading day.
MongoDB shows strength in the short-term supported by its long-term uptrend with only the medium-term trend being bearish.
Buying could speed up should prices move above the nearby swing high at 145.48 where further buy stops might get triggered. Selling could accelerate should prices move below the close-by swing low at 130.26 where further sell stops might get activated.
Among the 10 market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Bearish Intraday Reversal" stand out. Although it is usually interpreted as bearish, it has actually shown to be bullish for MongoDB. Out of 92 times, MDB closed higher 65.22% 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 51.09% with an average market move of 1.97%.