MDLZ rises to highest close since April 20th
Mondelez International Inc. (MDLZ) Technical Analysis Report for Jun 01, 2020 | by Techniquant Editorial Team
Moving higher for the 4th day in a row, MDLZ finished Monday at 52.25 gaining $0.13 (0.25%) on low volume, slightly underperforming the Nasdaq 100 (0.45%). Today's close at 52.25 marks the highest recorded closing price since April 20th. Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range in a lackluster session.
Daily Candlestick Chart (MDLZ as at Jun 01, 2020):
Monday's trading range has been $0.80 (1.54%), that's below the last trading month's daily average range of $1.03. 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.
With another close above the upper Bollinger Band, prices are confirming their strong upward momentum in the short-term. A drop back into the Bollinger Band on the next trading day though could signal a potential change in momentum that might lead to a correction back down towards the center of the Bollinger Bands at 50.36.
While still in a long-term downtrend, the short and medium-term trends both turned bullish already.
Trading close to April's high at 54.61 we could see further upside momentum if potential buy stops at the level get activated.
Among the two market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "4 Consecutive Higher Closes" stand out. Although it is usually interpreted as bullish, it has actually shown to be bearish for Mondelez International. Out of 79 times, MDLZ closed lower 55.70% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the short side has been after 10 trading days, showing a win rate of 50.63% with an average market move of -0.50%.