MLM closes within previous day's range
Martin Marietta Materials Inc. (MLM) Technical Analysis Report for Jul 24, 2020 | by Techniquant Editorial Team
MLM ended the week 0.04% higher at 223.65 after edging higher $0.22 (0.1%) today, outperforming the S&P 500 (-0.62%). Closing within the prior day's range, prices failed to decisively move beyond the previous day's trading range.
Daily Candlestick Chart (MLM as at Jul 24, 2020):
Friday's trading range has been $5.46 (2.44%), that's slightly above the last trading month's daily average range of $5.44. 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 lower than usual for MLM.
Two candlestick patterns are matching today's price action, the Bearish Spinning Top and the Hanging Man which are both known as bearish patterns. The last time a Hanging Man showed up on June 23rd, MLM lost -2.58% on the following trading day.
Although still in a long-term downtrend, the short and medium-term trends both turned bullish already.
Buying could speed up should prices move above the nearby swing high at 228.09 where further buy stops might get activated. Selling could accelerate should prices move below the close-by swing low at 219.31 where further sell stops might get triggered. Further buying could move prices higher should the market test June's nearby high at 230.46.
Among the four market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Hanging Man" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for Martin Marietta. Out of 78 times, MLM closed higher 58.97% of the time on the next trading day after the market condition occurred.