MMC finds buyers again around 84.53
Marsh & McLennan Companies Inc. (MMC) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, MMC finished Thursday at 85.86 losing $1.00 (-1.15%), significantly underperforming the S&P 500 (6.24%). Closing within the prior day's range, prices failed to decisively move beyond the previous day's trading range.
Daily Candlestick Chart (MMC as at Mar 26, 2020):
Thursday's trading range has been $5.18 (5.88%), that's slightly below the last trading month's daily average range of $5.72. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently notably higher than usual for MMC.
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.
Prices are trading close to the key technical support level at 84.01 (S1). After having been unable to move lower than 84.33 in the previous session, the share found buyers again around the same price level today at 84.53. The last time this happened on March 19th, MMC gained 1.06% on the following trading day.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Buying could speed up should prices move above the nearby swing high at 90.87 where further buy stops might get activated.
Among the three market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Close to Swing High" stand out. Although it is usually interpreted as neutral, it has actually shown to be bullish for Marsh & McLennan. Out of 754 times, MMC closed higher 52.39% 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 63.26% with an average market move of 0.69%.