MNST closes higher for the 3rd day in a row
Monster Beverage Corporation (MNST) Technical Analysis Report for Jul 31, 2020 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, MNST finished the month 13.21% higher at 78.48 after gaining $0.66 (0.85%) today, underperforming the Nasdaq 100 (1.78%). Today's close at 78.48 marks the highest recorded closing price ever. Trading up to $0.93 lower after the open, Monster Beverage managed to reverse during the session as bulls took control ending the day above its opening price. Closing above Thursday's high at 78.00, the market confirmed its breakout through the prior session high after trading up to $0.48 above it intraday.
Daily Candlestick Chart (MNST as at Jul 31, 2020):
Friday's trading range has been $1.65 (2.12%), that's slightly above the last trading month's daily average range of $1.58. 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.
One bullish candlestick pattern matches today's price action, the Bullish Closing Marubozu. The last time a Bullish Closing Marubozu showed up on June 29, 2016, MNST gained 1.81% on the following trading day.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bullish Closing Marubozu" stand out. Its common bullish interpretation has been confirmed for Monster Beverage. Out of 8 times, MNST closed higher 62.50% 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 75.00% with an average market move of 5.13%.