MDT rallies 1.7% closing $1.58 higher
Medtronic plc. (MDT) Technical Analysis Report for Oct 12, 2018 | by Techniquant Editorial Team
MDT finished the week -2.55% lower at 94.69 after surging $1.58 (1.7%) today, slightly outperforming the S&P 500 (1.42%). This is the biggest single-day gain in over a month. Trading up to $0.93 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 September 21st, MDT gained 1.03% on the following trading day. Closing within the prior day's range, prices missed to decisively move beyond the previous day's trading range.
Daily Candlestick Chart (MDT as at Oct 12, 2018):
Friday's trading range has been $1.66 (1.76%), that's slightly above the last trading month's daily average range of $1.54. Weekly volatility is also higher, being way above the market's average weekly trading range. The longer-term, monthly volatility is currently notably higher than usual for MDT.
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. Additionally, one bullish candlestick pattern matches today's price action, the Bullish Spinning Top.
Crossing above the lower Bollinger Band, prices have lost at least some of their downward momentum in the short-term and could now be heading back up towards the mean of the Bollinger Bands at 97.15.
Although the stock 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 four market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bullish Spinning Top" stand out. Its common bullish interpretation has been confirmed for Medtronic plc. Out of 220 times, MDT closed higher 55.91% 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 52.27% with an average market move of 0.25%.