MMC closes within previous day's range
Marsh & McLennan Companies Inc. (MMC) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team
Moving higher for the 4th day in a row, MMC finished Wednesday at 118.83 edging higher $0.21 (0.18%), outperforming the S&P 500 (-0.46%). Trading $1.55 higher after the open, Marsh & McLennan was unable to hold its gains as the bears took control ending the day below its opening price. Closing within the prior day's range, prices missed to decisively move beyond the previous day's trading range.
Daily Candlestick Chart (MMC as at Sep 16, 2020):
Wednesday's trading range has been $1.90 (1.6%), that's slightly below the last trading month's daily average range of $2.28. 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 slightly higher than usual for MMC.
Two candlestick patterns are matching today's price action, the Bearish Spinning Top and the Shooting Star which are both known as bearish patterns. The last time a Bearish Spinning Top showed up on September 11th, MMC actually gained 1.74% on the following trading day.
Prices are trading close to the key technical support level at 117.74 (S1).
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 120.97, upside momentum might accelerate should the share be able to break out to new highs for the year.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Close near low of period" stand out. While it is usually interpreted as bearish, it has actually shown to be bullish for Marsh & McLennan. Out of 497 times, MMC closed higher 56.14% 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 59.36% with an average market move of 0.88%.