MLCO finds buyers again around 18.97
Melco Resorts & Entertainment Limited (MLCO) Technical Analysis Report for Aug 15, 2019 | by Techniquant Editorial Team
MLCO ended Thursday at 19.23 gaining $0.20 (1.05%), outperforming the S&P 500 (0.25%). Closing within the prior day's range, prices missed to decisively move beyond the previous day's trading range.
Daily Candlestick Chart (MLCO as at Aug 15, 2019):
Thursday's trading range has been $0.55 (2.87%), that's slightly below the last trading month's daily average range of $0.70. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently significantly higher than usual for MLCO.
After moving lower in the prior session, the market managed to close higher but below the previous day's open, forming a bullish Harami Candle. Additionally, one bullish candlestick pattern matches today's price action, the Bullish Spinning Top.
Prices are trading close to the key technical resistance level at 19.60 (R1). After having been unable to move lower than 18.86 in the prior session, the share found buyers again around the same price level today at 18.97. The last time this happened on Tuesday, MLCO actually lost -4.42% on the following trading day.
Melco Resorts shows weakness in the short-term (in accordance with its long-term downtrend) with only the medium-term trend still being bullish.
Selling might speed up should prices move below the close-by swing low at 18.86 where further sell stops could get activated. Trading close to June's low at 18.68 we might see further downside momentum if potential sell stops at the level get triggered.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bullish Harami Candle" stand out. Although it is usually interpreted as bullish, it has actually shown to be bearish for Melco Resorts. Out of 42 times, MLCO closed lower 59.52% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the short side has been after eight trading days, showing a win rate of 52.38% with an average market move of -0.54%.