MLM closes lower for the 2nd day in a row
Martin Marietta Materials Inc. (MLM) Technical Analysis Report for Jul 31, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, MLM ended the month 0.3% higher at 207.18 after losing $2.02 (-0.97%) today, significantly underperforming the S&P 500 (0.77%). Today's close at 207.18 marks the lowest recorded closing price since July 9th. Closing below Thursday's low at 207.68, the stock confirmed its breakout through the previous session low after trading up to $5.97 below it intraday.
Daily Candlestick Chart (MLM as at Jul 31, 2020):
Friday's trading range has been $7.44 (3.57%), that's slightly above the last trading month's daily average range of $6.16. Weekly volatility is also higher, being above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for MLM.
One bullish candlestick pattern matches today's price action, the Takuri Line. The last time a Takuri Line showed up on June 25th, MLM actually lost -1.48% on the following trading day.
Martin Marietta closed below the 50-day moving average at 209.31 for the first time since May 22nd.
The market shows weakness in the short-term (in accordance with its long-term downtrend) with only the medium-term trend still being bullish.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "2 Consecutive Lower Closes" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for Martin Marietta. Out of 311 times, MLM closed higher 54.98% 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 56.91% with an average market move of 0.90%.