MMC finds buyers around 103.50 for the third day in a row
Marsh & McLennan Companies Inc. (MMC) Technical Analysis Report for May 22, 2020 | by Techniquant Editorial Team
MMC ended the week 0.03% higher at 104.50 after edging lower $0.04 (-0.04%) today, slightly underperforming the S&P 500 (0.24%) ahead of tomorrow's Memorial Day market holiday. Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range in a lackluster session.
Daily Candlestick Chart (MMC as at May 22, 2020):
Friday's trading range has been $1.34 (1.28%), that's far below the last trading month's daily average range of $2.62. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for MMC.
During the whole day, prices traded within the previous day's range, unable to trade above the prior day's high or below the previous day's low forming an Inside Bar. Additionally, one neutral candlestick pattern matches today's price action, the Doji.
Prices are trading close to the key technical support level at 103.31 (S1). The market found buyers again today around 103.50 for the third trading day in a row after having found demand at 103.18 in the prior session and at 103.51 two days ago. The last time this happened on April 24th, MMC gained 1.51% on the following trading day.
Though still in a long-term downtrend, the short and medium-term trends both turned bullish already.
Selling might accelerate should prices move below the close-by swing low at 103.18 where further sell stops could get activated.
Among the four market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Low close to previous two Lows" stand out. Its common bullish interpretation has been confirmed for Marsh & McLennan. Out of 139 times, MMC closed higher 54.68% 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 63.31% with an average market move of 0.99%.