MKC closes below its opening price unable to hold early session gains
McCormick & Company Incorporated (MKC) Technical Analysis Report for Feb 14, 2020 | by Techniquant Editorial Team
MKC finished the week 2.29% higher at 166.84 after losing $0.24 (-0.14%) today, slightly underperforming the S&P 500 (0.18%) ahead of tomorrow's Presidents' Day market holiday. Trading $1.25 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 failed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (MKC as at Feb 14, 2020):
Friday's trading range has been $2.26 (1.35%), that's slightly below the last trading month's daily average range of $2.84. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for MKC.
Prices are trading close to the key technical support level at 166.48 (S1). After spiking up to 168.87 during the day, the share found resistance at the 50-day moving average at 167.76. The last time this happened on October 21, 2019, MKC lost -1.16% on the following trading day.
McCormick & shows strength in the short-term supported by its long-term uptrend with only the medium-term trend being bearish.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Down Close Near Low of Period" stand out. Although it is usually interpreted as bearish, it has actually shown to be bullish for McCormick &. Out of 435 times, MKC closed higher 58.39% 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 63.22% with an average market move of 0.94%.