MLM rises to highest close since March 6th
Martin Marietta Materials Inc. (MLM) Technical Analysis Report for Jul 27, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, MLM ended Monday at 228.00 gaining $4.35 (1.95%) on high volume, strongly outperforming the S&P 500 (0.74%) ahead of Tuesday's earnings report. Today's close at 228.00 marks the highest recorded closing price since March 6th. The bulls were in full control today, moving the market higher throughout the whole session. Closing above Friday's high at 225.35, the share confirmed its breakout through the prior session high after trading up to $3.02 above it intraday.
Daily Candlestick Chart (MLM as at Jul 27, 2020):
MLM is set to report earnings before tomorrow's market open. For the upcoming report, analysts expect the company to have earned $3.02 per share. The company's last earnings report was released on May 5, 2020, when Martin Marietta Materials Inc. reported earnings of $0.41 per share missing market expectations by -26.8%.
Monday's trading range has been $6.39 (2.87%), that's 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. Prices continued to consolidate within a tight trading range between 219.89 and 228.37 where it has been caught now for the whole last trading week.
Two candlestick patterns are matching today's price action, the White Candle which is known as bullish pattern and one bearish pattern, the Last Engulfing Top Pattern. The last time a Last Engulfing Top Pattern showed up on June 4th, MLM actually gained 6.59% on the following trading day.
Unable to break through the key technical resistance level at 228.09 (R1), the market closed below it after spiking up to 228.37 earlier during the day. The failure to close above the resistance could increase that levels significance going forward.
Though still in a long-term downtrend, the short and medium-term trends both turned bullish already.
Further buying might move prices higher should the market test June's nearby high at 230.46.
Among the 10 market conditions that our pattern recognition engine identified today, the statistics for the Stock Earning Report based market condition "Trading Day before Earnings Report" stand out. Although it is usually interpreted as neutral, it has actually shown to be bullish for Martin Marietta. Out of 33 times, MLM closed higher 63.64% 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 57.58% with an average market move of 2.69%.