MKC pushes through Thursday's high
McCormick & Company Incorporated (MKC) Technical Analysis Report for Jul 31, 2020 | by Techniquant Editorial Team
MKC ended the month 8.63% higher at 194.90 after gaining $1.06 (0.55%) today on high volume, slightly underperforming the S&P 500 (0.77%). Trading up to $2.27 lower after the open, the stock managed to reverse during the session as bulls took control ending the day above its opening price. Closing above Thursday's high at 194.09, McCormick & confirmed its breakout through the previous session high after trading up to $0.81 above it intraday.
Daily Candlestick Chart (MKC as at Jul 31, 2020):
Friday's trading range has been $3.97 (2.05%), that's slightly above the last trading month's daily average range of $3.31. 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 lower than usual for MKC. Prices continued to consolidate within a tight trading range between 190.47 and 196.08 where it has been caught now for the whole last trading week.
In a volatile session, prices traded above the prior day's high as well as below the previous day's low, forming a bullish Outside Bar. Additionally, one bullish candlestick pattern matches today's price action, the Bullish Closing Marubozu. The last time a Bullish Closing Marubozu showed up on December 26, 2018, MKC gained 1.23% on the following trading day.
After trading down to 190.93 earlier during the day, the market bounced off the key technical support level at 191.40 (S1). The failure to close below the support might increase that levels significance as support going forward.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Buying could accelerate should prices move above the nearby swing high at 195.56 where further buy stops might get triggered.
Among the eight market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bullish Outside Bar" stand out. Its common bullish interpretation has been confirmed for McCormick &. Out of 119 times, MKC closed higher 54.62% 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 63.87% with an average market move of 1.35%.