MDLZ drops to lowest close since May 26th
Mondelez International Inc. (MDLZ) Technical Analysis Report for Jun 26, 2020 | by Techniquant Editorial Team
MDLZ finished the week -4.72% lower at 50.08 after losing $0.75 (-1.48%) today, but still significantly outperforming the Nasdaq 100 (-2.5%). Today's close at 50.08 marks the lowest recorded closing price since May 26th. Trading $0.45 higher after the open, the market was unable to hold its gains as the bears took control ending the day below its opening price. Closing within the previous day's range, prices missed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (MDLZ as at Jun 26, 2020):
Friday's trading range has been $1.23 (2.43%), that's slightly above the last trading month's daily average range of $1.10. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for MDLZ.
In a volatile session, prices traded above the previous day's high as well as below the prior day's low, forming a bearish Outside Bar. Additionally, one bearish candlestick pattern matches today's price action, the Black Candle.
After having been unable to move lower than 50.07 in the previous session, the stock found buyers again around the same price level today at 49.93. The last time this happened on Tuesday, MDLZ actually lost -2.47% on the following trading day.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Trading close to April's low at 48.00 we could see further downside momentum if potential sell stops at the level get activated.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bearish Outside Bar" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for Mondelez International. Out of 132 times, MDLZ closed higher 58.33% 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 57.58% with an average market move of 0.27%.