MDLA closes within previous day's range after lackluster session
Medallia Inc. (MDLA) Technical Analysis Report for Jul 31, 2020 | by Techniquant Editorial Team
MDLA finished the month 21.75% higher at 30.73 after edging higher $0.21 (0.69%) today, slightly underperforming the S&P 500 (0.77%). Closing within the prior day's range, prices missed to decisively move beyond the previous day's trading range in a lackluster session.
Daily Candlestick Chart (MDLA as at Jul 31, 2020):
Friday's trading range has been $1.13 (3.66%), that's below the last trading month's daily average range of $1.48. Weekly volatility is also lower, being way below the market's average weekly trading range. The longer-term, monthly volatility is currently just the same than usual for MDLA. Prices continued to consolidate within a tight trading range between 29.40 and 31.78 where it has been caught now for the whole last trading week.
Prices are trading close to the key technical resistance level at 31.78 (R1). After having been unable to move above 30.75 in the prior session, Medallia ran into sellers again around the same price level today, failing to move higher than 30.84. The last time this happened on Wednesday, MDLA lost -2.21% 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 nearby swing high at 31.41 where further buy stops could get triggered. Selling might accelerate should prices move below the close-by swing low at 29.40 where further sell stops could get activated. As prices are trading close to July's high at 32.00, upside momentum might speed up should the market mark new highs for the month.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Close to Swing Low" stand out. While it is usually interpreted as neutral, it has actually shown to be bullish for Medallia. Out of 59 times, MDLA closed higher 50.85% 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 64.41% with an average market move of 2.49%.