MPC closes higher for the 2nd day in a row
Marathon Petroleum Corporation (MPC) Technical Analysis Report for Jun 30, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, MPC ended the month 6.37% higher at 37.38 after gaining $1.98 (5.59%) today, strongly outperforming the S&P 500 (1.54%). The bulls were in full control today, moving the market higher throughout the whole session. Closing above Monday's high at 36.43, the share confirmed its breakout through the prior session high after trading up to $1.23 above it intraday.
Daily Candlestick Chart (MPC as at Jun 30, 2020):
Tuesday's trading range has been $2.95 (8.4%), that's above the last trading month's daily average range of $2.26. Things look different on the weekly timeframe, where the market's trading range of the last week has been below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for MPC.
In a volatile session, prices traded above the previous day's high as well as below the prior day's low, forming a bullish Outside Bar. In spite of a weak opening the stock managed to close above the previous day's open and close, forming a bullish Engulfing Candle. Additionally, one bullish candlestick pattern matches today's price action, the White Candle.
Prices are trading close to the key technical resistance level at 37.94 (R1). The market found buyers again today around 34.71 for the third trading day in a row after having found demand at 35.00 in the prior session and at 34.66 two days ago. The last time this happened on April 27th, MPC gained 7.49% on the following trading day.
Marathon Petroleum 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 nearby swing high at 39.05 where further buy stops might get triggered. As prices are trading close to June's low at 34.35, downside momentum could accelerate should MPC mark new lows for the month.
Among the 12 market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bullish Engulfing Candle" stand out. Its common bullish interpretation has been confirmed for Marathon Petroleum. Out of 53 times, MPC closed higher 64.15% 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 60.38% with an average market move of 1.32%.