MDT closes within previous day's range
Medtronic plc. (MDT) Technical Analysis Report for May 22, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, MDT finished the week 0.88% higher at 94.72 after losing $0.69 (-0.72%) today, underperforming the S&P 500 (0.24%). Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (MDT as at May 22, 2020):
Friday's trading range has been $3.09 (3.23%), that's slightly above the last trading month's daily average range of $2.78. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for MDT.
Two candlestick patterns are matching today's price action, the Hammer and the Last Engulfing Bottom Pattern which are both known as bullish patterns. The last time a Last Engulfing Bottom Pattern showed up on March 20th, MDT actually lost -5.86% on the following trading day.
After trading as low as 92.79 during the day, Medtronic plc. found support at the 50-day moving average at 93.05.
The share shows weakness in the short-term (in accordance with its long-term downtrend) with only the medium-term trend still being bullish.
Among the four market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Hammer" stand out. Its common bullish interpretation has been confirmed for Medtronic plc.. Out of 26 times, MDT closed higher 53.85% 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 73.08% with an average market move of 0.78%.