MOS closes lower for the 2nd day in a row
Mosaic Company (MOS) Technical Analysis Report for Jul 31, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, MOS finished the month 7.67% higher at 13.47 after edging lower $0.03 (-0.22%) today, underperforming the S&P 500 (0.77%). Trading up to $0.16 lower after the open, Mosaic managed to reverse during the session as bulls took control ending the day above its opening price. Closing within the previous day's range, prices missed to decisively move beyond the prior day's trading range in a lackluster session.
Daily Candlestick Chart (MOS as at Jul 31, 2020):
Friday's trading range has been $0.25 (1.86%), that's far below the last trading month's daily average range of $0.53. 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.
Two candlestick patterns are matching today's price action, the Southern Doji which is known as bullish pattern and one neutral pattern, the Doji. The last time a Southern Doji showed up on May 7th, MOS gained 7.30% on the following trading day.
After trading down to 13.30 earlier during the day, the share bounced off the key technical support level at 13.30 (S1). The failure to close below the support could increase that levels significance as support going forward. After having been unable to move lower than 13.32 in the previous session, the market found buyers again around the same price level today at 13.30.
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 14.04 where further buy stops could get activated.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Doji" stand out. Though it is usually interpreted as neutral, it has actually shown to be bullish for Mosaic. Out of 137 times, MOS closed higher 50.36% 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 eight trading days, showing a win rate of 57.66% with an average market move of 0.46%.