MKC closes within prior day's range after lackluster session
McCormick & Company Incorporated (MKC) Technical Analysis Report for Feb 13, 2019 | by Techniquant Editorial Team
MKC ended Wednesday at 128.59 losing $0.16 (-0.12%), slightly underperforming the S&P 500 (0.3%). Trading $0.66 higher after the open, McCormick & was unable to hold its gains as the bears took control ending the day below its opening price. Closing within the prior day's range, prices missed to decisively move beyond the previous day's trading range in a lackluster session.
Daily Candlestick Chart (MKC as at Feb 13, 2019):
Wednesday's trading range has been $1.65 (1.28%), that's below the last trading month's daily average range of $2.77. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently higher than usual for MKC.
During the whole day, prices traded within the prior day's range, unable to trade above the previous day's high or below the prior day's low forming an Inside Bar. Additionally, one bearish candlestick pattern matches today's price action, the Bearish Spinning Top.
Prices are trading close to the key technical resistance level at 129.71 (R1). After having been unable to move above 129.71 in the previous session, the share ran into sellers again around the same price level today, failing to move higher than 129.50. The last time this happened on February 7th, MKC actually gained 1.47% on the following trading day.
While the stock is experiencing a short-term uptrend, this might just be a correction, as both the medium and long-term trends are still bearish.
Buying could speed up should prices move above the nearby swing high at 129.71 where further buy stops might get triggered.
Among the four market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Close to Swing High" stand out. Though it is usually interpreted as neutral, it has actually shown to be bullish for McCormick &. Out of 764 times, MKC closed higher 55.63% 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 58.77% with an average market move of 0.47%.