MDLA breaks below Tuesday's low
Medallia Inc. (MDLA) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, MDLA ended Wednesday at 27.44 losing $1.71 (-5.87%) on high volume, strongly underperforming the S&P 500 (-0.46%). Today's close at 27.44 marks the lowest recorded closing price since July 16th. The bears were in full control today, moving the market lower throughout the whole session. Closing below Tuesday's low at 28.38, the market confirmed its breakout through the previous session low after trading up to $0.94 below it intraday.
Daily Candlestick Chart (MDLA as at Sep 16, 2020):
Wednesday's trading range has been $1.58 (5.47%), that's slightly below the last trading month's daily average range of $2.18. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently just the same than usual for MDLA.
One bearish candlestick pattern matches today's price action, the Black Candle.
Prices are trading close to the key technical support level at 27.20 (S1). The share closed below the 200-day moving average at 27.45 for the first time since June 30th. When this moving average was crossed below the last time on June 26th, MDLA lost -4.72% on the following trading day.
Although still in a long-term uptrend, the short and medium-term trends both turned bearish already.
Trading close to July's low at 25.36 we might see further downside momentum if potential sell stops at the level get activated.
Among the eight market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Decisive Down Move" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for Medallia. Out of 31 times, MDLA closed higher 61.29% 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 67.74% with an average market move of 3.72%.