MNRO dominated by bears dragging the market lower throughout the day
Monro Inc. (MNRO) Technical Analysis Report for Feb 14, 2020 | by Techniquant Editorial Team
MNRO ended the week 0.5% higher at 61.74 after losing $0.82 (-1.31%) today, notably underperforming the S&P 500 (0.18%) ahead of tomorrow's Presidents' Day market holiday. The bears were in full control today, moving the market lower throughout the whole session. 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 (MNRO as at Feb 14, 2020):
Friday's trading range has been $1.09 (1.74%), that's below the last trading month's daily average range of $1.72. Weekly volatility is also lower, being way below the market's average weekly trading range. The longer-term, monthly volatility is currently higher than usual for MNRO. Prices continued to consolidate within a tight trading range between 60.56 and 62.94 where it has been caught now for the whole last trading week.
One bearish candlestick pattern matches today's price action, the Black Candle. The last time a Black Candle showed up on February 6th, MNRO actually gained 2.26% on the following trading day.
Prices are trading close to the key technical support level at 61.42 (S1). After having been unable to move lower than 61.56 in the previous session, Monro found buyers again around the same price level today at 61.54.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Buying could speed up should prices move above the nearby swing high at 62.94 where further buy stops might get triggered. Selling could accelerate should prices move below the close-by swing low at 61.23 where further sell stops might get activated. As prices are trading close to February's high at 63.32, upside momentum could speed up should the market mark new highs for the month.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Down Close Near Low of Period" stand out. Although it is usually interpreted as bearish, it has actually shown to be bullish for Monro. Out of 494 times, MNRO closed higher 56.68% 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 56.07% with an average market move of 0.74%.