MLM closes higher for the 2nd day in a row
Martin Marietta Materials Inc. (MLM) Technical Analysis Report for Feb 14, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, MLM finished the week -3.87% lower at 263.48 after gaining $0.80 (0.3%) today, slightly outperforming the S&P 500 (0.18%) ahead of tomorrow's Presidents' Day market holiday. Trading up to $1.19 lower after the open, the stock managed to reverse during the session as bulls took control ending the day above its opening price. The last time this happened on February 7th, MLM gained 0.98% on the following trading day. Closing within the prior day's range, prices missed to decisively move beyond the previous day's trading range in a lackluster session.
Daily Candlestick Chart (MLM as at Feb 14, 2020):
Friday's trading range has been $2.32 (0.88%), that's far below the last trading month's daily average range of $5.96. Things look different on the weekly timeframe, where the market's trading range of the last week has been way above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for MLM.
During the whole day, prices traded within the prior day's range, unable to trade above the previous day's high or below the prior day's low forming an Inside Bar.
Prices are trading close to the key technical resistance level at 266.24 (R1).
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Buying could speed up should prices move above the nearby swing high at 265.05 where further buy stops might get triggered.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Up Close near high of period" stand out. Its common bullish interpretation has been confirmed for Martin Marietta. Out of 490 times, MLM closed higher 52.24% 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 55.31% with an average market move of 0.70%.