MDLZ dominated by bulls lifting the market higher throughout the day
Mondelez International Inc. (MDLZ) Technical Analysis Report for May 22, 2020 | by Techniquant Editorial Team
MDLZ finished the week -0.52% lower at 49.70 after gaining $0.42 (0.85%) today on low volume, slightly outperforming the Nasdaq 100 (0.38%) ahead of tomorrow's Memorial Day market holiday. The bulls were in full control today, moving the market higher throughout the whole session. Closing within the prior day's range, prices failed to decisively move beyond the previous day's trading range in a lackluster session.
Daily Candlestick Chart (MDLZ as at May 22, 2020):
Friday's trading range has been $0.77 (1.57%), that's below the last trading month's daily average range of $1.10. 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 slightly lower than usual for MDLZ.
In spite of a weak opening the market managed to close above the prior day's open and close, forming a bullish Engulfing Candle. The last time this candlestick pattern showed up on May 15th, MDLZ gained 2.02% on the following trading day. Additionally, two candlestick patterns are matching today's price action, the Bullish Short Candle and the White Candle which are both known as bullish patterns.
After having been unable to move lower than 49.11 in the previous session, the share found buyers again around the same price level today at 48.97.
The stock shows weakness in the short-term (in accordance with its long-term downtrend) with only the medium-term trend still being bullish.
Selling could speed up should prices move below the nearby swing low at 48.77 where further sell stops might get activated. As prices are trading close to May's high at 51.70, upside momentum could accelerate should Mondelez International mark new highs for the month. Further selling might move prices lower should the market test April's close-by low at 48.00.
Among the eight market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bullish Short Candle" stand out. Its common bullish interpretation has been confirmed for Mondelez International. Out of 71 times, MDLZ closed higher 60.56% 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 64.79% with an average market move of 1.10%.