MMC ends the day indecisive
Marsh & McLennan Companies Inc. (MMC) Technical Analysis Report for May 29, 2020 | by Techniquant Editorial Team
MMC finished the month 8.83% higher at 105.92 after losing $0.67 (-0.63%) today on high volume, strongly underperforming the S&P 500 (0.48%). Ending the day with an indecisive close, neither buyers nor sellers were able to gain control during the session.
Daily Candlestick Chart (MMC as at May 29, 2020):
Friday's trading range has been $1.47 (1.39%), that's far below the last trading month's daily average range of $2.33. 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.
Three candlestick patterns are matching today's price action, the Bullish Hikkake Pattern which is known as bullish pattern and two bearish patterns, the Bearish Spinning Top and the Hanging Man. The last time a Hanging Man showed up on January 16th, MMC actually gained 1.18% on the following trading day.
The market shows weakness in the short-term (in accordance with its long-term downtrend) with only the medium-term trend still being bullish.
Buying might speed up should prices move above the close-by swing high at 107.46 where further buy stops could get triggered. Selling might accelerate should prices move below the nearby swing low at 104.70 where further sell stops could get activated. Trading close to March's high at 110.67 we might see further upside momentum if potential buy stops at the level get triggered.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Close to Swing Low" stand out. Though it is usually interpreted as neutral, it has actually shown to be bullish for Marsh & McLennan. Out of 639 times, MMC closed higher 54.77% 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 61.19% with an average market move of 0.86%.