MKC runs into sellers around 202.60 for the third day in a row
McCormick & Company Incorporated (MKC) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team
MKC ended Wednesday at 198.68 losing $1.67 (-0.83%), slightly underperforming the S&P 500 (-0.46%). Closing below Tuesday's low at 199.64, the stock confirmed its breakout through the prior session low after trading up to $1.14 below it intraday.
Daily Candlestick Chart (MKC as at Sep 16, 2020):
Wednesday's trading range has been $4.10 (2.04%), that's slightly above the last trading month's daily average range of $3.94. 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 higher than usual for MKC.
One bearish candlestick pattern matches today's price action, the Black Candle.
Prices are trading close to the key technical support level at 196.52 (S1). The market ran into sellers again today around 202.60 for the third trading day in a row after having found sellers at 203.16 in the previous session and at 202.82 two days ago. The last time this happened on August 25th, MKC actually gained 1.34% on the following trading day.
While McCormick & is currently in a short-term downtrend, this could just be a correction, as both the medium and long-term trends are still bullish.
Selling might accelerate should prices move below the nearby swing low at 196.84 where further sell stops could get triggered. Further selling might move prices lower should the market test August's close-by low at 194.47.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Black Candle" stand out. Although it is usually interpreted as bearish, it has actually shown to be bullish for McCormick &. Out of 474 times, MKC closed higher 59.28% 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 63.29% with an average market move of 0.97%.