MDLZ closes within prior day's range
Mondelez International Inc. (MDLZ) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team
MDLZ finished Wednesday at 57.97 losing $0.12 (-0.21%), but still strongly outperforming the Nasdaq 100 (-1.67%). Trading $0.42 higher after the open, the stock was unable to hold its gains as the bears took control ending the day below its opening price. Closing within the prior day's range, prices failed to decisively move beyond the previous day's trading range.
Daily Candlestick Chart (MDLZ as at Sep 16, 2020):
Wednesday's trading range has been $0.77 (1.32%), that's slightly below the last trading month's daily average range of $0.99. 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.
In a volatile session, prices traded above the prior day's high as well as below the previous day's low, forming a bearish Outside Bar. In spite of a strong opening Mondelez International closed below the prior day's open and close, forming a bearish Engulfing Candle.
Prices are trading close to the key technical support level at 57.51 (S1). After having been unable to move lower than 57.92 in the previous session, the share found buyers again around the same price level today at 57.90. The last time this happened on September 11th, MDLZ gained 0.80% on the following trading day.
Although the market is currently in a short-term downtrend, this might just be a correction, as both the medium and long-term trends are still bullish.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bearish Engulfing Candle" stand out. While it is usually interpreted as bearish, it has actually shown to be bullish for Mondelez International. Out of 108 times, MDLZ closed higher 60.19% 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 60.19% with an average market move of 0.17%.