MLM closes below its opening price unable to hold early session gains
Martin Marietta Materials Inc. (MLM) Technical Analysis Report for Sep 18, 2020 | by Techniquant Editorial Team
MLM ended the week 7.29% higher at 225.22 after losing $1.76 (-0.78%) today, but still slightly outperforming the S&P 500 (-1.12%). Trading $2.29 higher after the open, the stock was unable to hold its gains as the bears took control ending the day below its opening price. The last time this happened on Tuesday, MLM actually gained 3.14% on the following trading day. Closing within the prior day's range, prices missed to decisively move beyond the previous day's trading range.
Daily Candlestick Chart (MLM as at Sep 18, 2020):
Friday's trading range has been $5.64 (2.48%), that's slightly below the last trading month's daily average range of $6.27. 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 higher than usual for MLM.
Prices are trading close to the key technical resistance level at 230.00 (R1).
Crossing below the upper Bollinger Band, prices have lost at least some of their upward momentum in the short-term and could now be heading back down towards the mean of the Bollinger Bands at 212.33.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Further buying might move prices higher should the market test August's nearby high at 230.43.
Among the four market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Down Close Near Low of Period" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for Martin Marietta. Out of 457 times, MLM closed higher 52.74% 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 56.89% with an average market move of 0.92%.