MDT closes above its opening price after recovering from early selling pressure
Medtronic plc. (MDT) Technical Analysis Report for Jul 31, 2020 | by Techniquant Editorial Team
MDT ended the month 5.21% higher at 96.48 after edging higher $0.01 (0.01%) today, underperforming the S&P 500 (0.77%). Trading up to $1.78 lower after the open, the share 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.
Daily Candlestick Chart (MDT as at Jul 31, 2020):
Friday's trading range has been $1.91 (1.98%), that's slightly below the last trading month's daily average range of $2.05. 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 MDT.
Four candlestick patterns are matching today's price action, the Dragonfly Doji, the Southern Doji and the Takuri Line which are known as bullish patterns and one neutral pattern, the Doji.
After trading as low as 94.64 during the day, the stock found support at the 50-day moving average at 95.00. The last time this happened on May 22nd, MDT gained 2.57% on the following trading day. Prices are trading close to the key technical resistance level at 96.90 (R1).
Although still in a long-term uptrend, the short and medium-term trends both turned bearish already.
Among the 10 market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Dragonfly Doji" stand out. While it is usually interpreted as bullish, it has actually shown to be bearish for Medtronic plc.. Out of 1 times, MDT closed lower 100.00% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the short side has been after 10 trading days, showing a win rate of 100.00% with an average market move of -3.20%.