MKTX breaks above 50-day moving average for the first time since March 10th
MarketAxess Holdings Inc. (MKTX) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, MKTX ended Thursday at 352.79 gaining $22.48 (6.81%) on low volume, outperforming the S&P 500 (6.24%). Closing above Wednesday's high at 349.95, the share confirmed its breakout through the previous session high after trading up to $4.83 above it intraday.
Daily Candlestick Chart (MKTX as at Mar 26, 2020):
Thursday's trading range has been $23.19 (6.84%), that's below the last trading month's daily average range of $29.48. Things look different on the weekly timeframe, where the market's trading range of the last week has been above the market's average weekly trading range. The longer-term, monthly volatility is currently strongly higher than usual for MKTX.
Two candlestick patterns are matching today's price action, the Bullish Short Candle and the White Candle which are both known as bullish patterns.
The stock managed to close above the 50-day moving average at 344.54 for the first time since March 10th. Prices are trading close to the key technical resistance level at 367.30 (R1). After having been unable to move above 349.95 in the prior session, the market ran into sellers again around the same price level today, failing to move higher than 354.78. The last time this happened on March 20th, MKTX lost -9.44% on the following trading day.
Though MarketAxess Holdings is experiencing a short-term uptrend, this could just be a correction, as both the medium and long-term trends are still bearish.
With prices trading close to this year's high at 388.73, upside momentum might speed up should MKTX be able to break out to new highs for the year.
Among the 12 market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bounced off Technical Support S2" stand out. Its common bullish interpretation has been confirmed for MarketAxess Holdings. Out of 20 times, MKTX closed higher 55.00% 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 80.00% with an average market move of 5.09%.