MMC closes within previous day's range
Marsh & McLennan Companies Inc. (MMC) Technical Analysis Report for Feb 14, 2020 | by Techniquant Editorial Team
MMC finished the week 1.8% higher at 118.78 after losing $0.59 (-0.49%) today, underperforming the S&P 500 (0.18%) ahead of tomorrow's Presidents' Day market holiday. Closing within the prior day's range, prices missed to decisively move beyond the previous day's trading range.
Daily Candlestick Chart (MMC as at Feb 14, 2020):
Friday's trading range has been $1.40 (1.17%), that's slightly below the last trading month's daily average range of $1.70. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently significantly higher than usual for MMC.
After moving higher in the prior session, the share closed lower but above the previous day's open today, forming a bearish Harami Candle. The last time this candlestick pattern showed up on January 7th, MMC lost -0.30% on the following trading day.
Prices are trading close to the key technical resistance level at 119.88 (R1).
Crossing below the upper Bollinger Band, prices have lost at least some of their upward momentum in the short-term and might now be heading back down towards the mean of the Bollinger Bands at 115.55.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Buying could accelerate should prices move above the close-by swing high at 119.88 where further buy 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 "Bearish Harami Candle" stand out. While it is usually interpreted as bearish, it has actually shown to be bullish for Marsh & McLennan. Out of 70 times, MMC closed higher 55.71% 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 62.86% with an average market move of 0.63%.