MIK finds buyers at key support level
MIK ended Thursday at 18.86 tanking $3.07 (-14.0%) on high volume. This is the biggest single day loss since Inception. Today's closing price of 18.86 marks the lowest close since June 1st. Trading up to $0.61 lower after the open, the market managed to reverse during the session as bulls took control ending the day above its opening price. Closing below Wednesday's low at 21.50, The Michaels confirms its breakout through the prior session's low having traded $3.75 below it intraday.
Thursday's trading range was $1.34 (7.3%), that's far above last trading month's daily average range of $0.59. Weekly volatility is also higher, being way above the markets average with the monthly volatility being way above average.
After trading as low as 17.75 during the day, the stock bounced off the key support level at 18.28. The failure to close below the support could increase that levels importance as support going forward. Unable to break through the key technical resistance level at 19.06, the share closed below it after spiking as high as 19.09 during the day. The failure to close above the resistance might increase that levels importance as resistance going forward. After spiking up to 19.09 during the day, MIK found resistance at the 50-day moving average at 19.04.
Though the market is experiencing a short-term up trend, this could just be a correction, as both the medium and long term trends are still in negative territory. The Michaels broke below the 200-day moving average at 21.39 today for the first time since March 20th.
While classical technical analysis indicates a slightly bearish sentiment for the next trading day, our quantitative statistics show a different picture being bullish.
Market Conditions for The Michaels Comp
|Close to R1 Resistance||TQ Pro Members Only|
|Bullish Break through SMA 20||TQ Pro Members Only|
|Bounced off Technical Resistance R1||TQ Pro Members Only|
|Close to Swing Low||TQ Pro Members Only|
|Bullish Harami Candle||TQ Pro Members Only|
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