MDLZ breaks back below 20-day moving average
Mondelez International Inc. (MDLZ) Technical Analysis Report for Jun 23, 2020 | by Techniquant Editorial Team
Moving lower for the 3rd day in a row, MDLZ finished Tuesday at 51.92 losing $0.43 (-0.82%) on low volume, significantly underperforming the Nasdaq 100 (0.78%). The bears were in full control today, moving the market lower throughout the whole session. Closing within the prior day's range, prices missed to decisively move beyond the previous day's trading range in a lackluster session.
Daily Candlestick Chart (MDLZ as at Jun 23, 2020):
Tuesday's trading range has been $0.77 (1.46%), that's below the last trading month's daily average range of $1.12. 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.
Two candlestick patterns are matching today's price action, the Bearish Short Candle and the Black Candle which are both known as bearish patterns. The last time a Bearish Short Candle showed up on June 3rd, MDLZ lost -1.54% on the following trading day.
Prices are trading close to the key technical support level at 51.43 (S1). The share closed back below the 20-day moving average at 52.08 for the first time since June 15th. After having been unable to move lower than 51.91 in the prior session, Mondelez International found buyers again around the same price level today at 51.83.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Among the 10 market conditions that our pattern recognition engine identified today, the statistics for the Technical Indicators based market condition "RSI(2) below 20" stand out. Its common bullish interpretation has been confirmed for Mondelez International. Out of 253 times, MDLZ closed higher 55.34% 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 59.29% with an average market move of 0.57%.