MDLZ closes above its opening price after recovering from early selling pressure
Mondelez International Inc. (MDLZ) Technical Analysis Report for Jun 29, 2020 | by Techniquant Editorial Team
MDLZ ended Monday at 50.58 gaining $0.50 (1.0%) on low volume, slightly underperforming the Nasdaq 100 (1.14%). Trading up to $0.44 lower after the open, the share managed to reverse during the session as bulls took control ending the day above its opening price. The last time this happened on June 25th, MDLZ actually lost -1.48% on the following trading day. Closing within the prior day's range, prices failed to decisively move beyond the previous day's trading range in a lackluster session.
Daily Candlestick Chart (MDLZ as at Jun 29, 2020):
Monday's trading range has been $0.72 (1.43%), that's below the last trading month's daily average range of $1.10. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for MDLZ. Prices continued to consolidate within a tight trading range between 49.92 and 51.16 where it has been caught now for the last three trading days.
During the whole day, prices traded within the prior day's range, unable to trade above the previous day's high or below the prior day's low forming an Inside Bar. After moving lower in the previous session, the stock managed to close higher but below the prior day's open, forming a bullish Harami Candle. Additionally, one bullish candlestick pattern matches today's price action, the Takuri Line.
The market found buyers again today around 50.00 for the third trading day in a row after having found demand at 49.92 in the previous session and at 50.07 two days ago.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Buying might accelerate should prices move above the nearby swing high at 51.16 where further buy stops could get activated. Selling might speed up should prices move below the close-by swing low at 49.92 where further sell stops could get triggered. Further selling might move prices lower should the market test May's nearby low at 48.77.
Among the nine market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Low close to prior low" stand out. Its common bullish interpretation has been confirmed for Mondelez International. Out of 588 times, MDLZ closed higher 53.91% 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 56.12% with an average market move of 0.40%.