MPC unable to break through key resistance level
Marathon Petroleum Corporation (MPC) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team
MPC ended Wednesday at 32.36 gaining $1.27 (4.08%) on high volume, strongly outperforming the S&P 500 (-0.46%). Closing within the previous day's range, prices missed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (MPC as at Sep 16, 2020):
Wednesday's trading range has been $2.31 (7.38%), that's far above the last trading month's daily average range of $1.37. 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 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.
Unable to break through the key technical resistance level at 32.57 (R1), the market closed below it after spiking up to 33.06 earlier during the day. The failure to close above the resistance could increase that levels significance going forward. When prices bounced off a significant resistance level the last time on August 19th, MPC lost -4.20% on the following trading day. After having been unable to move lower than 30.95 in the previous session, Marathon Petroleum found buyers again around the same price level today at 30.75.
Though still in a long-term uptrend, the short and medium-term trends both turned bearish already.
Among the three market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bullish Outside Bar" stand out. Its common bullish interpretation has been confirmed for Marathon Petroleum. Out of 101 times, MPC closed higher 52.48% 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 60.40% with an average market move of 1.38%.