MLCO closes below its opening price unable to hold early session gains
Melco Resorts & Entertainment Limited (MLCO) Technical Analysis Report for Oct 12, 2018
Moving higher for the 2nd day in a row, MLCO ended the week -4.94% lower at 18.84 after gaining $0.64 (3.52%) today on low volume, outperforming the Nasdaq 100 (2.77%). Trading $0.21 higher after the open, the share was unable to hold its gains as the bears took control ending the day below its opening price. Ending the day with an indecisive close, neither buyers nor sellers were able to gain control during the session.
Daily Candlestick Chart (MLCO as at Oct 12, 2018):
Friday's trading range has been $0.49 (2.6%), that's below the last trading month's daily average range of $0.74. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for MLCO.
Two candlestick patterns are matching today's price action, the Bearish Hikkake Pattern and the Bearish Spinning Top which are both known as bearish patterns. The last time a Bearish Spinning Top showed up on September 5th, MLCO lost -8.72% on the following trading day.
Prices are trading close to the key technical resistance level at 19.10 (R1).
Crossing above the lower Bollinger Band, prices have lost at least some of their downward momentum in the short-term and could now be heading back up towards the mean of the Bollinger Bands at 20.66.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the Technical Indicators based market condition "Close crossed above the lower Bollinger Band" stand out. Its common bullish interpretation has been confirmed for Melco Resorts Ltd. Out of 60 times, MLCO closed higher 58.33% 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 65.00% with an average market move of 3.36%.