MLM soars, gaining $6.85 (3.14%) within a single day
Martin Marietta Materials Inc. (MLM) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team
Moving higher for the 5th day in a row, MLM finished Wednesday at 224.95 surging $6.85 (3.14%), strongly outperforming the S&P 500 (-0.46%). This is the biggest single-day gain in over a month. Today's close at 224.95 marks the highest recorded closing price since August 11th. Closing above Tuesday's high at 222.77, the share confirmed its breakout through the previous session high after trading up to $5.15 above it intraday.
Daily Candlestick Chart (MLM as at Sep 16, 2020):
Wednesday's trading range has been $10.75 (4.89%), that's far above the last trading month's daily average range of $5.98. Weekly volatility is also higher, being way above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for MLM.
In a volatile session, prices traded above the prior day's high as well as below the previous day's low, forming a bullish Outside Bar. The last time this happened on September 1st, MLM gained 2.27% on the following trading day.
The market managed to close above the 200-day moving average at 221.35 for the first time since February 20th. Prices are trading close to the key technical resistance level at 230.00 (R1). After having been unable to move lower than 217.54 in the prior session, the stock found buyers again around the same price level today at 217.17.
With another close above the upper Bollinger Band, prices are confirming their strong upward momentum in the short-term. A drop back into the Bollinger Band on the next trading day although could signal a potential change in momentum that might lead to a correction back down towards the center of the Bollinger Bands at 210.79.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Further buying could move prices higher should the market test August's nearby high at 230.43.
Among the nine market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bullish Outside Bar" stand out. Its common bullish interpretation has been confirmed for Martin Marietta. Out of 134 times, MLM closed higher 52.99% 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 64.93% with an average market move of 1.48%.