MMC breaks back above 20-day moving average
Marsh & McLennan Companies Inc. (MMC) Technical Analysis Report for Jun 30, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, MMC finished the month 1.37% higher at 107.37 after gaining $2.09 (1.99%) today, slightly outperforming the S&P 500 (1.54%). Closing above Monday's high at 105.75, Marsh & McLennan confirmed its breakout through the prior session high after trading up to $2.09 above it intraday.
Daily Candlestick Chart (MMC as at Jun 30, 2020):
Tuesday's trading range has been $3.11 (2.95%), that's slightly above the last trading month's daily average range of $2.72. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for MMC. Prices continued to consolidate within a tight trading range between 103.17 and 107.84 where it has been caught now for the whole last trading week.
One bullish candlestick pattern matches today's price action, the White Candle. The last time a White Candle showed up on June 25th, MMC actually lost -2.08% on the following trading day.
The market managed to close back above the 20-day moving average at 107.18 for the first time since June 18th. Prices are trading close to the key technical resistance level at 107.95 (R1).
Though still in a long-term downtrend, the short and medium-term trends both turned bullish already.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bullish Break through SMA 20" stand out. Its common bullish interpretation has been confirmed for Marsh & McLennan. Out of 166 times, MMC closed higher 52.41% 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 62.05% with an average market move of 1.12%.