MLCO finds buyers again around 14.95
Melco Resorts & Entertainment Limited (MLCO) Technical Analysis Report for Jun 30, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, MLCO ended the month -3.18% lower at 15.52 after gaining $0.11 (0.71%) today, underperforming the S&P 500 (1.54%). Trading up to $0.35 lower after the open, the stock managed to reverse during the session as bulls took control ending the day above its opening price. Closing above Monday's high at 15.45, Melco Resorts confirmed its breakout through the previous session high after trading up to $0.13 above it intraday.
Daily Candlestick Chart (MLCO as at Jun 30, 2020):
Tuesday's trading range has been $0.63 (4.12%), that's below the last trading month's daily average range of $0.80. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for MLCO. Prices continued to consolidate within a tight trading range between 14.90 and 15.64 where it has been caught now for the last three trading days.
After having been unable to move lower than 14.90 in the prior session, the market found buyers again around the same price level today at 14.95. The last time this happened on June 26th, MLCO gained 1.72% on the following trading day.
The share shows weakness in the short-term (in accordance with its long-term downtrend) with only the medium-term trend still being bullish.
Buying might accelerate should prices move above the close-by swing high at 15.64 where further buy stops could get activated. Selling might speed up should prices move below the nearby swing low at 14.90 where further sell stops could get triggered. Further selling might move prices lower should the market test May's close-by low at 14.18.
Among the eight market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Closed above last periods high" stand out. Its common bullish interpretation has been confirmed for Melco Resorts. Out of 378 times, MLCO closed higher 50.79% 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 61.38% with an average market move of 1.06%.