MFC closes higher for the 3rd day in a row
Manulife Financial Corporation (MFC) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, MFC ended Thursday at 12.08 gaining $0.33 (2.81%), strongly underperforming the S&P 500 (6.24%). Closing within the previous day's range, prices missed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (MFC as at Mar 26, 2020):
Thursday's trading range has been $1.06 (8.95%), that's slightly above the last trading month's daily average range of $0.93. Weekly volatility is also higher, being above the market's average weekly trading range. The longer-term, monthly volatility is currently higher than usual for MFC.
One bearish candlestick pattern matches today's price action, the Shooting Star.
After having been unable to move above 12.70 in the previous session, Manulife Financial ran into sellers again around the same price level today, missing to move higher than 12.78. The last time this happened on March 13th, MFC lost -19.14% on the following trading day.
Although the stock is experiencing a short-term uptrend, this might just be a correction, as both the medium and long-term trends are still bearish.
Among the three market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Shooting Star" stand out. While it is usually interpreted as bearish, it has actually shown to be bullish for Manulife Financial. Out of 68 times, MFC closed higher 57.35% 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 57.35% with an average market move of 0.28%.