MKL dominated by bulls lifting the market higher throughout the day
Markel Corporation (MKL) Technical Analysis Report for May 21, 2019 | by Techniquant Editorial Team
MKL ended Tuesday at 1074.69 surging $17.05 (1.61%), outperforming the S&P 500 (0.85%). This is the biggest single-day gain in over three weeks. Today's close at 1074.69 marks the highest recorded closing price since December 6, 2018. The bulls were in full control today, moving the market higher throughout the whole session. Closing above Monday's high at 1070.00, the market confirmed its breakout through the previous session high after trading up to $4.88 above it intraday.
Daily Candlestick Chart (MKL as at May 21, 2019):
Tuesday's trading range has been $19.88 (1.88%), that's slightly below the last trading month's daily average range of $21.48. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for MKL.
One bullish candlestick pattern matches today's price action, the White Candle.
Buyers managed to take out the key technical resistance level at 1070.50 (now S1), which is likely to act as support going forward. The last time this happened on April 29th, MKL gained 1.36% on the following trading day. Markel found buyers again today around 1055.00 for the third trading day in a row after having found demand at 1052.65 in the prior session and at 1052.53 two days ago.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
With prices trading close to this year's high at 1085.00, upside momentum might speed up should the stock be able to break out to new highs for the year.
Among the 10 market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Low close to previous low" stand out. Its common bullish interpretation has been confirmed for Markel. Out of 681 times, MKL closed higher 53.30% 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 57.56% with an average market move of 0.51%.