MLCO breaks below Thursday's low
Melco Resorts & Entertainment Limited (MLCO) Technical Analysis Report for Feb 14, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, MLCO finished the week 5.63% higher at 21.40 after losing $0.70 (-3.17%) today, significantly underperforming the S&P 500 (0.18%) ahead of tomorrow's Presidents' Day market holiday. The bears were in full control today, moving the market lower throughout the whole session. Closing below Thursday's low at 21.82, the market confirmed its breakout through the prior session low after trading up to $0.43 below it intraday.
Daily Candlestick Chart (MLCO as at Feb 14, 2020):
Friday's trading range has been $0.86 (3.88%), that's slightly above the last trading month's daily average range of $0.85. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for MLCO.
In spite of a strong opening the stock closed below the previous day's open and close, forming a bearish Engulfing Candle. Additionally, one bearish candlestick pattern matches today's price action, the Black Candle. The last time a Black Candle showed up on February 7th, MLCO actually gained 4.84% on the following trading day.
Melco Resorts closed back below the 200-day moving average at 21.68. After having been unable to move above 22.32 in the prior session, the share ran into sellers again around the same price level today, missing to move higher than 22.25.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
As prices are trading close to February's low at 20.13, downside momentum might accelerate should MLCO mark new lows for the month.
Among the 11 market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bearish Break through SMA 200" stand out. Its common bearish interpretation has been confirmed for Melco Resorts. Out of 30 times, MLCO closed lower 53.33% 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 10 trading days, showing a win rate of 60.00% with an average market move of -0.39%.