MIC closes below its opening price unable to hold early session gains
Macquarie Infrastructure Corporation (MIC) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team
MIC ended Wednesday at 26.93 gaining $0.18 (0.67%), notably outperforming the S&P 500 (-0.46%). Trading $0.42 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.
Daily Candlestick Chart (MIC as at Sep 16, 2020):
Wednesday's trading range has been $0.84 (3.11%), that's above the last trading month's daily average range of $0.73. Things look different on the weekly timeframe, where the market's trading range of the last week has been below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for MIC. Prices continued to consolidate within a tight trading range between 26.56 and 27.53 where it has been caught now for the last three trading days.
Two candlestick patterns are matching today's price action, the Bearish Spinning Top and the Bearish High-Wave Candle which are both known as bearish patterns. The last time a Bearish High-Wave Candle showed up on August 4th, MIC lost -4.83% on the following trading day.
Prices are trading close to the key technical support level at 26.39 (S1).
While still in a long-term uptrend, the short and medium-term trends both turned bearish already.
Buying might accelerate should prices move above the nearby swing high at 27.53 where further buy stops could get activated. Selling might speed up should prices move below the close-by swing low at 26.16 where further sell stops could get triggered.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bearish High-Wave Candle" stand out. Although it is usually interpreted as bearish, it has actually shown to be bullish for Macquarie Infrastructure. Out of 40 times, MIC closed higher 52.50% 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 eight trading days, showing a win rate of 57.50% with an average market move of 0.43%.