MMC finds buyers at key support level
Marsh & McLennan Companies Inc. (MMC) Technical Analysis Report for Jul 31, 2020 | by Techniquant Editorial Team
MMC ended the month 8.6% higher at 116.60 after edging lower $0.11 (-0.09%) today on high volume, underperforming the S&P 500 (0.77%). Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (MMC as at Jul 31, 2020):
Friday's trading range has been $2.51 (2.13%), that's above the last trading month's daily average range of $1.85. Weekly volatility is also higher, being slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for MMC.
One bearish candlestick pattern matches today's price action, the Black Candle. The last time a Black Candle showed up on July 6th, MMC lost -0.53% on the following trading day.
After trading down to 115.49 earlier during the day, the share bounced off the key technical support level at 116.56 (S1). The failure to close below the support might increase that levels significance as support going forward.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
With prices trading close to this year's high at 119.88, upside momentum could speed up should the market be able to break out to new highs for the year.
Among the two market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bounced off Technical Support S1" stand out. Its common bullish interpretation has been confirmed for Marsh & McLennan. Out of 457 times, MMC closed higher 60.83% 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 61.93% with an average market move of 0.81%.