MDLZ finds buyers at key support level
Mondelez International Inc. (MDLZ) Technical Analysis Report for Jul 31, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, MDLZ finished the month 8.53% higher at 55.49 after losing $0.28 (-0.5%) today, notably underperforming the Nasdaq 100 (1.78%). Trading up to $0.83 lower after the open, the share managed to reverse during the session as bulls took control ending the day above its opening price. Ending the day with an indecisive close, neither buyers nor sellers were able to gain control during the session.
Daily Candlestick Chart (MDLZ as at Jul 31, 2020):
Friday's trading range has been $1.12 (2.02%), that's slightly above the last trading month's daily average range of $1.00. Weekly volatility is also higher, being slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently higher than usual for MDLZ.
Two candlestick patterns are matching today's price action, the Bullish Spinning Top which is known as bullish pattern and one bearish pattern, the Hanging Man. The last time a Bullish Spinning Top showed up on June 22nd, MDLZ actually lost -0.82% on the following trading day.
After trading down to 54.56 earlier during the day, the stock bounced off the key technical support level at 54.80 (S1). The failure to close below the support might increase that levels importance as support going forward.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Selling could speed up should prices move below the nearby swing low at 54.54 where further sell stops might get triggered.
Among the eight market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Gap Down" stand out. Although it is usually interpreted as bearish, it has actually shown to be bullish for Mondelez International. Out of 65 times, MDLZ closed higher 61.54% 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 67.69% with an average market move of 1.01%.