MLM closes within prior day's range
Martin Marietta Materials Inc. (MLM) Technical Analysis Report for Aug 03, 2020 | by Techniquant Editorial Team
MLM ended Monday at 208.08 gaining $0.90 (0.43%), slightly underperforming the S&P 500 (0.72%). 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 Aug 03, 2020):
Monday's trading range has been $5.02 (2.4%), that's slightly below the last trading month's daily average range of $6.15. Things look different on the weekly timeframe, where the market's trading range of the last week has been 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 July 31st, MLM gained 0.43% on the following trading day.
Prices are trading close to the key technical resistance level at 208.30 (R1). After having been unable to move above 209.15 in the prior session, the stock ran into sellers again around the same price level today, missing to move higher than 209.32.
Although Martin Marietta is currently in a short-term downtrend, this might just be a correction, as both the medium and long-term trends are still bullish.
Selling could speed up should prices move below the close-by swing low at 201.71 where further sell stops might get triggered.
Among the three market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Close to Swing Low" stand out. While it is usually interpreted as neutral, it has actually shown to be bullish for Martin Marietta. Out of 746 times, MLM closed higher 51.47% 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 53.75% with an average market move of 0.72%.