MNRO closes above its opening price after recovering from early selling pressure
Monro Inc. (MNRO) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team
MNRO finished Wednesday at 43.27 gaining $1.29 (3.07%) on high volume, strongly outperforming the S&P 500 (-0.46%). Trading up to $0.85 lower after the open, Monro managed to reverse during the session as bulls took control ending the day above its opening price. The last time this happened on September 9th, MNRO actually lost -4.86% on the following trading day. Closing above Tuesday's high at 42.83, the share confirmed its breakout through the previous session high after trading up to $0.77 above it intraday.
Daily Candlestick Chart (MNRO as at Sep 16, 2020):
Wednesday's trading range has been $2.22 (5.26%), that's above the last trading month's daily average range of $1.66. Weekly volatility is also higher, being slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently lower than usual for MNRO.
In a volatile session, prices traded above the prior day's high as well as below the previous day's low, forming a bullish Outside Bar.
After having been unable to move lower than 41.48 in the prior session, the stock found buyers again around the same price level today at 41.38.
Crossing above the lower Bollinger Band, prices have lost at least some of their downward momentum in the short-term and could now be heading back up towards the mean of the Bollinger Bands at 45.76.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Low close to previous low" stand out. Its common bullish interpretation has been confirmed for Monro. Out of 585 times, MNRO closed higher 52.48% 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 55.38% with an average market move of 0.75%.