MDLZ closes within prior day's range
Mondelez International Inc. (MDLZ) Technical Analysis Report for Jun 19, 2020 | by Techniquant Editorial Team
MDLZ ended the week 3.61% higher at 52.56 after losing $0.53 (-1.0%) today, underperforming the Nasdaq 100 (-0.03%). The bears were in full control today, moving the market lower throughout the whole session. Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (MDLZ as at Jun 19, 2020):
Friday's trading range has been $1.38 (2.57%), that's above the last trading month's daily average range of $1.14. Weekly volatility is also higher, being slightly above 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 52.37 and 53.78 where it has been caught now for the last three trading days.
Two candlestick patterns are matching today's price action, the Black Candle and the Dark Cloud Cover which are both known as bearish patterns.
Mondelez International found buyers again today around 52.40 for the third trading day in a row after having found demand at 52.37 in the previous session and at 52.40 two days ago. The last time this happened on May 7th, MDLZ gained 1.48% on the following trading day.
Although still in a long-term downtrend, the short and medium-term trends both turned bullish already.
Selling might accelerate should prices move below the nearby swing low at 52.37 where further sell stops could get activated. Trading close to April's high at 54.61 we might see further upside momentum if potential buy stops at the level get triggered.
Among the eight market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Dark Cloud Cover" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for Mondelez International. Out of 11 times, MDLZ closed higher 72.73% 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 81.82% with an average market move of 2.46%.