MNST dominated by bulls lifting the market higher throughout the day
Monster Beverage Corporation (MNST) Technical Analysis Report for May 22, 2020 | by Techniquant Editorial Team
MNST ended the week 4.09% higher at 68.71 after gaining $0.35 (0.51%) today on low volume, slightly outperforming the Nasdaq 100 (0.38%) ahead of tomorrow's Memorial Day market holiday. The bulls were in full control today, moving the market higher throughout the whole session. Closing within the prior day's range, prices failed to decisively move beyond the previous day's trading range in a lackluster session.
Daily Candlestick Chart (MNST as at May 22, 2020):
Friday's trading range has been $1.06 (1.56%), that's far below the last trading month's daily average range of $1.76. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for MNST. Prices continued to consolidate within a tight trading range between 67.72 and 69.55 where it has been caught now for the last three trading days.
Three candlestick patterns are matching today's price action, the Bullish Hikkake Pattern, the Bullish Short Candle and the White Candle which are known as bullish patterns. The last time a Bullish Hikkake Pattern showed up on April 1st, MNST gained 3.69% on the following trading day.
Prices are trading close to the key technical resistance level at 69.36 (R1).
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Buying might speed up should prices move above the close-by swing high at 69.55 where further buy stops could get triggered. With prices trading close to this year's high at 70.52, upside momentum might accelerate should Monster Beverage be able to break out to new highs for the year.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bullish Hikkake Pattern" stand out. Its common bullish interpretation has been confirmed for Monster Beverage. Out of 126 times, MNST closed higher 51.59% 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 61.11% with an average market move of 1.48%.