MLM closes within previous day's range after lackluster session
Martin Marietta Materials Inc. (MLM) Technical Analysis Report for Jun 30, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, MLM finished the month 7.54% higher at 206.57 after edging higher $0.07 (0.03%) today, significantly underperforming the S&P 500 (1.54%). Trading up to $3.18 lower after the open, the market managed to reverse during the session as bulls took control ending the day above its opening price. The last time this happened on June 25th, MLM actually lost -1.48% on the following trading day. Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range in a lackluster session.
Daily Candlestick Chart (MLM as at Jun 30, 2020):
Tuesday's trading range has been $5.37 (2.61%), that's below the last trading month's daily average range of $7.43. Weekly volatility is also lower, being way below the market's average weekly trading range. The longer-term, monthly volatility is currently lower than usual for MLM. Prices continued to consolidate within a tight trading range between 198.81 and 210.29 where it has been caught now for the whole last trading week.
One bullish candlestick pattern matches today's price action, the Bullish Spinning Top.
Prices are trading close to the key technical resistance level at 209.86 (R1).
Martin Marietta 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 209.86 where further buy stops could get activated. Selling might speed up should prices move below the nearby swing low at 198.81 where further sell stops could get triggered.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "2 Consecutive Higher Closes" stand out. Its common bullish interpretation has been confirmed for Martin Marietta. Out of 324 times, MLM closed higher 54.32% 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 54.94% with an average market move of 0.83%.