MNST closes above its opening price after recovering from early selling pressure
Monster Beverage Corporation (MNST) Technical Analysis Report for Feb 14, 2020 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, MNST finished the week 1.38% higher at 69.86 after gaining $0.17 (0.24%) today, slightly underperforming the Nasdaq 100 (0.29%) ahead of tomorrow's Presidents' Day market holiday. Today's close at 69.86 marks the highest recorded closing price ever. Trading up to $0.28 lower after the open, the stock managed to reverse during the session as bulls took control ending the day above its opening price. Closing above Thursday's high at 69.83, Monster Beverage confirmed its breakout through the prior session high after trading up to $0.11 above it intraday.
Daily Candlestick Chart (MNST as at Feb 14, 2020):
Friday's trading range has been $0.54 (0.77%), that's far below the last trading month's daily average range of $0.92. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for MNST.
After trading down to 69.40 earlier during the day, the market bounced off the key technical support level at 69.66 (S1). The failure to close below the support could increase that levels significance as support going forward. When prices bounced off a significant support level the last time on January 31st, MNST gained 1.23% on the following trading day. After having been unable to move above 69.83 in the previous session, the share ran into sellers again around the same price level today, missing to move higher than 69.94.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Trading close to 2018's high at 70.22 we might see further upside momentum if potential buy stops at the level get activated.
Among the eight 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 Monster Beverage. Out of 404 times, MNST closed higher 59.90% 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 61.39% with an average market move of 1.32%.