MNST breaks back above 200-day moving average
Monster Beverage Corporation (MNST) Technical Analysis Report for Dec 04, 2019 | by Techniquant Editorial Team
MNST finished Wednesday at 60.39 surging $1.40 (2.37%), strongly outperforming the Nasdaq 100 (0.51%). This is the biggest single-day gain in over three weeks. Today's close at 60.39 marks the highest recorded closing price since August 8th. The bulls were in full control today, moving the market higher throughout the whole session. Closing above Tuesday's high at 59.78, the stock confirmed its breakout through the prior session high after trading up to $0.69 above it intraday.
Daily Candlestick Chart (MNST as at Dec 04, 2019):
Wednesday's trading range has been $1.58 (2.68%), that's above the last trading month's daily average range of $1.18. 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 MNST.
Notwithstanding a weak opening the market managed to close above the previous day's open and close, forming a bullish Engulfing Candle. The last time this candlestick pattern showed up on September 10th, MNST actually lost -1.54% on the following trading day. Additionally, two candlestick patterns are matching today's price action, the Bullish Belt-hold and the White Candle which are both known as bullish patterns.
The share managed to close back above the 200-day moving average at 59.50.
While still in a long-term downtrend, the short and medium-term trends both turned bullish already.
Further buying might move prices higher should the market test November's nearby high at 61.49.
Among the 11 market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bullish Engulfing Candle" stand out. Its common bullish interpretation has been confirmed for Monster Beverage. Out of 51 times, MNST closed higher 56.86% 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 68.63% with an average market move of 1.59%.