MPC finds support at 50-day moving average
Marathon Petroleum Corporation (MPC) Technical Analysis Report for Jul 31, 2020 | by Techniquant Editorial Team
MPC ended the month 2.19% higher at 38.20 after edging higher $0.12 (0.32%) today, slightly underperforming the S&P 500 (0.77%) ahead of Monday's earnings report. Closing within the prior day's range, prices missed to decisively move beyond the previous day's trading range in a lackluster session.
Daily Candlestick Chart (MPC as at Jul 31, 2020):
MPC is set to report earnings before tomorrow's market open. For the upcoming report, analysts expect the company to have earned $-1.85 per share. The company's last earnings report was released on May 5, 2020, when Marathon Petroleum Corporation reported earnings of $-0.16 per share surpassing market expectations by 33.3%.
Friday's trading range has been $1.31 (3.48%), that's below the last trading month's daily average range of $1.57. 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 MPC.
One bearish candlestick pattern matches today's price action, the In-Neck Pattern.
After trading as low as 37.24 during the day, the share found support at the 50-day moving average at 37.30. The last time this happened on September 16, 2019, MPC gained 1.91% on the following trading day.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Buying might accelerate should prices move above the nearby swing high at 39.95 where further buy stops could get triggered.
Among the four market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "In-Neck Pattern" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for Marathon Petroleum. Out of 5 times, MPC closed higher 80.00% 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 80.00% with an average market move of 5.28%.