MLM closes above its opening price after recovering from early selling pressure
Martin Marietta Materials Inc. (MLM) Technical Analysis Report for Jul 29, 2020 | by Techniquant Editorial Team
MLM ended Wednesday at 214.13 gaining $1.73 (0.81%), slightly underperforming the S&P 500 (1.24%). Trading up to $4.44 lower after the open, the stock managed to reverse during the session as bulls took control ending the day above its opening price. Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (MLM as at Jul 29, 2020):
Wednesday's trading range has been $6.20 (2.9%), that's slightly above the last trading month's daily average range of $6.12. Weekly volatility is also higher, being slightly above 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 Southern Doji which is known as bullish pattern and one neutral pattern, the Doji. The last time a Doji showed up on July 2nd, MLM gained 1.33% on the following trading day.
Prices are trading close to the key technical support level at 208.30 (S1). Prices are trading close to the key technical resistance level at 217.80 (R1).
The share shows weakness in the short-term (in accordance with its long-term downtrend) with only the medium-term trend still being bullish.
Among the three market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Doji" stand out. Although it is usually interpreted as neutral, it has actually shown to be bullish for Martin Marietta. Out of 123 times, MLM closed higher 51.22% of the time on the next trading day after the market condition occurred.