MDT finds buyers at key support level
Medtronic plc. (MDT) Technical Analysis Report for Feb 14, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, MDT finished the week -1.36% lower at 117.33 after gaining $0.50 (0.43%) today, slightly outperforming the S&P 500 (0.18%) ahead of tomorrow's Presidents' Day market holiday. Trading up to $0.85 lower after the open, Medtronic plc. 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 failed to decisively move beyond the previous day's trading range in a lackluster session.
Daily Candlestick Chart (MDT as at Feb 14, 2020):
Friday's trading range has been $1.53 (1.31%), that's below the last trading month's daily average range of $1.88. Things look different on the weekly timeframe, where the market's trading range of the last week has been way above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for MDT.
After trading down to 116.00 earlier during the day, the market bounced off the key technical support level at 116.16 (S1). The failure to close below the support might increase that levels significance as support going forward. After having been unable to move above 117.51 in the prior session, the share ran into sellers again around the same price level today, missing to move higher than 117.53. The last time this happened on February 6th, MDT lost -1.94% on the following trading day.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bounced off Technical Support S1" stand out. Its common bullish interpretation has been confirmed for Medtronic plc.. Out of 399 times, MDT closed higher 59.90% 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 56.64% with an average market move of 0.69%.