MNST stuck within tight trading range
Monster Beverage Corporation (MNST) Technical Analysis Report for Jun 30, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, MNST ended the month -3.6% lower at 69.32 after gaining $0.21 (0.3%) today, notably underperforming the Nasdaq 100 (1.96%). Trading up to $0.51 lower after the open, the share managed to reverse during the session as bulls took control ending the day above its opening price. Closing above Monday's high at 69.26, Monster Beverage confirmed its breakout through the prior session high after trading up to $0.25 above it intraday.
Daily Candlestick Chart (MNST as at Jun 30, 2020):
Tuesday's trading range has been $0.93 (1.35%), that's far below the last trading month's daily average range of $1.62. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for MNST. Prices continued to consolidate within a tight trading range between 67.69 and 69.51 where it has been caught now for the last three trading days.
One bearish candlestick pattern matches today's price action, the Bearish Hikkake Pattern. The last time a Bearish Hikkake Pattern showed up on June 23rd, MNST lost -3.01% on the following trading day.
Buyers managed to take out the key technical resistance level at 69.20 (now S1), which is likely to act as support going forward. The market ran into sellers again today around 69.51 for the third trading day in a row after having found sellers at 69.26 in the previous session and at 69.38 two days ago.
The stock shows weakness in the short-term (in accordance with its long-term downtrend) with only the medium-term trend still being bullish.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bearish Hikkake Pattern" stand out. Its common bearish interpretation has been confirmed for Monster Beverage. Out of 134 times, MNST closed lower 52.99% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the short side has been after two trading days, showing a win rate of 54.48% with an average market move of -0.12%.