MED breaks back below 200-day moving average
MEDIFAST INC (MED) Technical Analysis Report for May 22, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, MED ended the week 0.16% higher at 91.52 after losing $1.20 (-1.29%) today, notably underperforming the S&P 500 (0.24%) ahead of tomorrow's Memorial Day market holiday. Closing below Thursday's low at 92.38, the share confirmed its breakout through the prior session low after trading up to $1.09 below it intraday.
Daily Candlestick Chart (MED as at May 22, 2020):
Friday's trading range has been $2.17 (2.33%), that's far below the last trading month's daily average range of $5.18. Weekly volatility is also lower, being way below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for MED.
Two candlestick patterns are matching today's price action, the Bearish Short Candle and the Black Candle which are both known as bearish patterns. The last time a Black Candle showed up on May 12th, MED actually gained 2.99% on the following trading day.
MEDIFAST INC closed back below the 200-day moving average at 92.37.
The stock shows weakness in the short-term (in accordance with its long-term downtrend) with only the medium-term trend still being bullish.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bearish Break through SMA 200" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for MEDIFAST INC. Out of 43 times, MED closed higher 60.47% 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 58.14% with an average market move of 1.95%.