MDLZ runs into sellers around 42.42 for the third day in a row
Mondelez International Inc. (MDLZ) Technical Analysis Report for Jan 11, 2019 | by Techniquant Editorial Team
MDLZ ended the week 3.4% higher at 42.23 after edging lower $0.11 (-0.26%) today on low volume, but still slightly outperforming the Nasdaq 100 (-0.3%). 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 (MDLZ as at Jan 11, 2019):
Friday's trading range has been $0.39 (0.92%), that's far below the last trading month's daily average range of $0.95. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for MDLZ. Prices continued to consolidate within a tight trading range between 41.68 and 42.42 where it has been caught now for the last three trading days.
After moving higher in the prior session, the market closed lower but above the previous day's open today, forming a bearish Harami Candle. Additionally, one bearish candlestick pattern matches today's price action, the Bearish Spinning Top.
After trading down to 42.03 earlier during the day, the share bounced off the key technical support level at 42.07 (S1). The failure to close below the support might increase that levels significance as support going forward. Mondelez International ran into sellers again today around 42.42 for the third trading day in a row after having found sellers at 42.35 in the prior session and at 42.31 two days ago. The last time this happened on January 3rd, MDLZ actually gained 2.77% on the following trading day.
While still in a long-term downtrend, the short and medium-term trends both turned bullish already.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bounced off Technical Support S1" stand out. Its common bullish interpretation has been confirmed for Mondelez International. Out of 469 times, MDLZ closed higher 55.44% 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 56.93% with an average market move of 0.40%.