MDT pushes through Wednesday's high
Medtronic plc. (MDT) Technical Analysis Report for Dec 05, 2019 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, MDT ended Thursday at 112.20 gaining $0.26 (0.23%), slightly outperforming the S&P 500 (0.15%). Trading up to $0.72 lower after the open, the stock managed to reverse during the session as bulls took control ending the day above its opening price. Closing above Wednesday's high at 112.14, Medtronic plc. confirmed its breakout through the previous session high after trading up to $0.17 above it intraday.
Daily Candlestick Chart (MDT as at Dec 05, 2019):
Thursday's trading range has been $1.09 (0.97%), that's below the last trading month's daily average range of $1.63. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for MDT.
Buyers managed to take out the key technical resistance level at 112.05 (now S1), which is likely to act as support going forward. The last time this happened on November 27th, MDT actually lost -0.96% on the following trading day. After having been unable to move above 112.14 in the prior session, the market ran into sellers again around the same price level today, missing to move higher than 112.31.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Buying might speed up should prices move above the nearby swing high at 112.71 where further buy stops could get activated. With prices trading close to this year's high at 114.46, upside momentum might accelerate should the share be able to break out to new highs for the year.
Among the nine 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. While it is usually interpreted as bearish, it has actually shown to be bullish for Medtronic plc.. Out of 580 times, MDT closed higher 56.38% 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 58.28% with an average market move of 0.52%.