MHK closes higher for the 2nd day in a row
Mohawk Industries Inc. (MHK) Technical Analysis Report for Jul 12, 2019 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, MHK ended the week -0.18% lower at 151.13 after gaining $2.17 (1.46%) today, outperforming the S&P 500 (0.46%). Ending with a strong close near the high of the day sets a bullish note for the next session.
Daily Candlestick Chart (MHK as at Jul 12, 2019):
Friday's trading range has been $3.07 (2.05%), that's slightly above the last trading month's daily average range of $2.82. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for MHK.
One bullish candlestick pattern matches today's price action, the White Candle. The last time a White Candle showed up on July 1st, MHK gained 0.50% on the following trading day.
Prices are trading close to the key technical resistance level at 152.84 (R1).
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Buying could accelerate should prices move above the close-by swing high at 153.30 where further buy stops might get activated. With prices trading close to this year's high at 153.54, upside momentum could speed up should Mohawk be able to break out to new highs for the year.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Close to Swing High" stand out. While it is usually interpreted as neutral, it has actually shown to be bullish for Mohawk. Out of 759 times, MHK closed higher 56.26% 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 55.86% with an average market move of 0.63%.