MDU breaks below key technical support level
MDU Resources Group Inc. (MDU) Technical Analysis Report for Jul 31, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, MDU finished the month -5.41% lower at 20.98 after losing $0.35 (-1.64%) today on high volume, significantly underperforming the S&P 500 (0.77%). Today's close at 20.98 marks the lowest recorded closing price since July 9th. Ending the day with an indecisive close, neither buyers nor sellers were able to gain control during the session.
Daily Candlestick Chart (MDU as at Jul 31, 2020):
Friday's trading range has been $0.78 (3.68%), that's far above the last trading month's daily average range of $0.62. Weekly volatility is also higher, being slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for MDU.
Prices broke below the key technical support level at 21.01 (now R1), which is likely to act as resistance going forward. The last time this happened on Monday, MDU actually gained 0.05% on the following trading day.
The stock shows weakness in the short-term (in accordance with its long-term downtrend) with only the medium-term trend still being bullish.
Further selling could move prices lower should the market test June's close-by low at 19.96.
Among the three market conditions that our pattern recognition engine identified today, the statistics for the Technical Indicators based market condition "RSI(2) below 20" stand out. Its common bullish interpretation has been confirmed for MDU Resources. Out of 275 times, MDU closed higher 56.73% 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 55.64% with an average market move of 0.36%.