MDLZ pushes through key technical resistance level
Mondelez International Inc. (MDLZ) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team
MDLZ ended Thursday at 48.90 gaining $2.79 (6.05%) on low volume, slightly outperforming the Nasdaq 100 (5.72%). The bulls were in full control today, moving the market higher throughout the whole session. Closing above Wednesday's high at 47.76, the stock confirmed its breakout through the previous session high after trading up to $1.48 above it intraday.
Daily Candlestick Chart (MDLZ as at Mar 26, 2020):
Thursday's trading range has been $3.24 (7.03%), that's slightly above the last trading month's daily average range of $3.11. Weekly volatility is also higher, being slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently significantly higher than usual for MDLZ.
One bullish candlestick pattern matches today's price action, the White Candle.
Buyers managed to take out the key technical resistance level at 46.57 (now S1), which is likely to act as support going forward. Prices are trading close to the key technical resistance level at 49.72 (R1). After having been unable to move lower than 45.81 in the prior session, the market found buyers again around the same price level today at 46.00. The last time this happened on March 20th, MDLZ actually lost -3.21% on the following trading day.
Although Mondelez International is experiencing a short-term uptrend, this might just be a correction, as both the medium and long-term trends are still bearish.
Buying could speed up should prices move above the nearby swing high at 49.72 where further buy stops might get activated.
Among the nine market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Low close to previous low" stand out. Its common bullish interpretation has been confirmed for Mondelez International. Out of 581 times, MDLZ closed higher 54.56% 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 56.80% with an average market move of 0.35%.