MOS closes above its opening price after recovering from early selling pressure
Mosaic Company (MOS) Technical Analysis Report for Jun 30, 2020 | by Techniquant Editorial Team
MOS ended the month 3.47% higher at 12.51 after losing $0.14 (-1.11%) today, strongly underperforming the S&P 500 (1.54%). Trading up to $0.14 lower after the open, the share managed to reverse during the session as bulls took control ending the day above its opening price. 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 (MOS as at Jun 30, 2020):
Tuesday's trading range has been $0.30 (2.4%), that's far below the last trading month's daily average range of $0.74. 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 MOS.
During the whole day, prices traded within the prior day's range, unable to trade above the previous day's high or below the prior day's low forming an Inside Bar. Additionally, one neutral candlestick pattern matches today's price action, the Doji.
Unable to break through the key technical resistance level at 12.64 (R1), Mosaic closed below it after spiking up to 12.66 earlier during the day. The failure to close above the resistance might increase that levels significance going forward. After having been unable to move lower than 12.31 in the previous session, the market found buyers again around the same price level today at 12.36. The last time this happened on June 26th, MOS gained 4.72% on the following trading day.
The stock shows weakness in the short-term (in accordance with its long-term downtrend) with only the medium-term trend still being bullish.
Buying could speed up should prices move above the close-by swing high at 12.94 where further buy stops might get triggered.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bounced off Technical Resistance R1" stand out. Its common bearish interpretation has been confirmed for Mosaic. Out of 390 times, MOS closed lower 58.46% 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 10 trading days, showing a win rate of 53.85% with an average market move of -0.77%.