MDLZ closes above its opening price after recovering from early selling pressure
Mondelez International Inc. (MDLZ) Technical Analysis Report for Jul 01, 2020 | by Techniquant Editorial Team
MDLZ ended Wednesday at 51.08 edging lower $0.05 (-0.1%), significantly underperforming the Nasdaq 100 (1.21%). Trading up to $0.18 lower after the open, Mondelez International managed to reverse during the session as bulls took control ending the day above its opening price. 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 Jul 01, 2020):
Wednesday's trading range has been $0.45 (0.88%), that's far below the last trading month's daily average range of $1.09. Weekly volatility is also lower, being 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 51.33 where it has been caught now for the whole last trading week.
One neutral candlestick pattern matches today's price action, the Doji.
Unable to break through the key technical resistance level at 51.16 (R1), the market closed below it after spiking up to 51.33 earlier during the day. The failure to close above the resistance might increase that levels significance going forward. After having been unable to move above 51.23 in the prior session, the stock ran into sellers again around the same price level today, missing to move higher than 51.33. The last time this happened on June 23rd, MDLZ lost -2.47% on the following trading day.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Among the four market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "High close to previous High" stand out. Although it is usually interpreted as bearish, it has actually shown to be bullish for Mondelez International. Out of 606 times, MDLZ closed higher 55.78% 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 53.30% with an average market move of 0.33%.