MHK falls to lowest close since February 7th
Mohawk Industries Inc. (MHK) Technical Analysis Report for Mar 15, 2019 | by Techniquant Editorial Team
Moving lower for the 3rd day in a row, MHK finished the week -2.66% lower at 128.57 after losing $0.69 (-0.53%) today, significantly underperforming the S&P 500 (0.5%). Today's close at 128.57 marks the lowest recorded closing price since February 7th. Trading $0.64 higher after the open, the stock was unable to hold its gains as the bears took control ending the day below its opening price. Closing within the previous day's range, prices missed to decisively move beyond the prior day's trading range in a lackluster session.
Daily Candlestick Chart (MHK as at Mar 15, 2019):
Friday's trading range has been $1.83 (1.42%), that's below the last trading month's daily average range of $2.36. 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 MHK.
After trading as low as 128.04 during the day, Mohawk found support at the 100-day moving average at 128.04. Prices broke below the key technical support level at 128.79 (now R1), which is likely to act as resistance going forward. The last time this happened on January 8th, MHK actually gained 3.53% on the following trading day.
The share shows weakness in the short-term (in accordance with its long-term downtrend) with only the medium-term trend still being bullish.
Further selling might move prices lower should the market test February's close-by low at 125.54.
Among the four market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Price broke through Technical Support S1" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for Mohawk. Out of 230 times, MHK closed higher 50.43% 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 60.87% with an average market move of 1.44%.