MGA runs into sellers again around 32.79
Magna International Inc. (MGA) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, MGA ended Thursday at 32.09 gaining $1.53 (5.01%), strongly underperforming the S&P 500 (6.24%). The bulls were in full control today, moving the market higher throughout the whole session. Closing within the previous day's range, prices missed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (MGA as at Mar 26, 2020):
Thursday's trading range has been $2.12 (6.91%), that's slightly below the last trading month's daily average range of $2.81. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently notably higher than usual for MGA.
One bullish candlestick pattern matches today's price action, the White Candle. The last time a White Candle showed up on Tuesday, MGA gained 4.87% on the following trading day.
Prices are trading close to the key technical support level at 29.54 (S1). After having been unable to move above 32.40 in the previous session, Magna International ran into sellers again around the same price level today, failing to move higher than 32.79.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Among the four market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Decisive Up Move" stand out. Its common bullish interpretation has been confirmed for Magna International. Out of 300 times, MGA closed higher 54.33% 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 54.33% with an average market move of 0.39%.