MDLZ closes above its opening price after recovering from early selling pressure
Mondelez International Inc. (MDLZ) Technical Analysis Report for Jun 25, 2020 | by Techniquant Editorial Team
MDLZ ended Thursday at 50.83 gaining $0.19 (0.38%), underperforming the Nasdaq 100 (0.99%). Trading up to $0.51 lower after the open, the stock managed to reverse during the session as bulls took control ending the day above its opening price. The last time this happened on Monday, MDLZ actually lost -0.82% on the following trading day. Closing within the previous day's range, prices missed to decisively move beyond the prior day's trading range in a lackluster session.
Daily Candlestick Chart (MDLZ as at Jun 25, 2020):
Thursday's trading range has been $0.89 (1.76%), that's below the last trading month's daily average range of $1.11. 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.
One bullish candlestick pattern matches today's price action, the Hammer.
Prices are trading close to the key technical resistance level at 51.43 (R1).
Although Mondelez International is experiencing a short-term uptrend, this might just be a correction, as both the medium and long-term trends are still bearish.
Further selling could move prices lower should the market test May's nearby low at 48.77.
Among the four market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Close near high of period" stand out. Its common bullish interpretation has been confirmed for Mondelez International. Out of 556 times, MDLZ closed higher 50.18% 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 57.37% with an average market move of 0.09%.