MLM pushes through Monday's high
Martin Marietta Materials Inc. (MLM) Technical Analysis Report for Aug 04, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, MLM ended Tuesday at 212.28 gaining $4.20 (2.02%), strongly outperforming the S&P 500 (0.36%). Closing above Monday's high at 209.32, the market confirmed its breakout through the previous session high after trading up to $3.41 above it intraday.
Daily Candlestick Chart (MLM as at Aug 04, 2020):
Tuesday's trading range has been $5.40 (2.58%), that's slightly below the last trading month's daily average range of $6.24. Weekly volatility is also lower, being slightly below 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 White Candle.
Martin Marietta managed to close back above the 50-day moving average at 210.56. When this moving average was crossed above the last time on May 26th, MLM gained 7.08% on the following trading day.
Though the stock is currently in a short-term downtrend, this might just be a correction, as both the medium and long-term trends are still bullish.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bullish Break through SMA 50" stand out. Its common bullish interpretation has been confirmed for Martin Marietta. Out of 75 times, MLM closed higher 64.00% 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 61.33% with an average market move of 2.32%.