MMC closes above its opening price after recovering from early selling pressure
Marsh & McLennan Companies Inc. (MMC) Technical Analysis Report for Jan 11, 2019 | by Techniquant Editorial Team
MMC finished the week 1.54% higher at 81.15 after losing $0.31 (-0.38%) today, slightly underperforming the S&P 500 (-0.01%). Trading up to $0.62 lower after the open, the share managed to reverse during the session as bulls took control ending the day above its opening price. Closing within the prior day's range, prices failed to decisively move beyond the previous day's trading range in a lackluster session.
Daily Candlestick Chart (MMC as at Jan 11, 2019):
Friday's trading range has been $0.78 (0.96%), that's far below the last trading month's daily average range of $1.69. Weekly volatility is also lower, being way below the market's average weekly trading range. The longer-term, monthly volatility is currently lower than usual for MMC. Prices continued to consolidate within a tight trading range between 79.42 and 81.51 where it has been caught now for the whole last trading week.
During the whole day, prices traded within the prior day's range, unable to trade above the previous day's high or below the prior day's low forming an Inside Bar. Additionally, one bearish candlestick pattern matches today's price action, the Hanging Man.
Prices are trading close to the key technical support level at 81.13 (S1). The stock found buyers again today around 80.38 for the third trading day in a row after having found demand at 80.31 in the previous session and at 80.24 two days ago. The last time this happened on September 14, 2018, MMC actually lost -0.16% on the following trading day.
Though the market is experiencing a short-term uptrend, this might just be a correction, as both the medium and long-term trends are still bearish.
Buying could speed up should prices move above the nearby swing high at 81.51 where further buy stops might get activated.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Low close to prior two Lows" stand out. Its common bullish interpretation has been confirmed for Marsh & McLennan. Out of 148 times, MMC closed higher 52.03% 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 61.49% with an average market move of 0.84%.