MDLZ breaks back below 100-day moving average
Mondelez International Inc. (MDLZ) Technical Analysis Report for Jun 22, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, MDLZ finished Monday at 52.35 losing $0.21 (-0.4%) on low volume, significantly underperforming the Nasdaq 100 (1.22%). Trading up to $0.39 lower after the open, the stock managed to reverse during the session as bulls took control ending the day above its opening price. Ending the day with an indecisive close, neither buyers nor sellers were able to gain control during the session.
Daily Candlestick Chart (MDLZ as at Jun 22, 2020):
Monday's trading range has been $0.69 (1.32%), that's far below the last trading month's daily average range of $1.13. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for MDLZ.
One bullish candlestick pattern matches today's price action, the Bullish Spinning Top. The last time a Bullish Spinning Top showed up on June 10th, MDLZ actually lost -4.86% on the following trading day.
After trading as low as 51.91 during the day, Mondelez International found support at the 20-day moving average at 51.96. The market closed back below the 100-day moving average at 52.51 for the first time since June 16th.
The share shows weakness in the short-term (in accordance with its long-term downtrend) with only the medium-term trend still being bullish.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bearish Break through SMA 100" stand out. Although it is usually interpreted as bearish, it has actually shown to be bullish for Mondelez International. Out of 78 times, MDLZ closed higher 50.00% 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 64.10% with an average market move of 0.58%.