MT dominated by bulls lifting the market higher throughout the day
Arcelor Mittal NY Registry Shares NEW (MT) Technical Analysis Report for Jun 30, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, MT ended the month 11.54% higher at 10.73 after edging higher $0.16 (1.51%) today on high volume, slightly underperforming 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 10.61, the stock confirmed its breakout through the previous session high after trading up to $0.21 above it intraday.
Daily Candlestick Chart (MT as at Jun 30, 2020):
Tuesday's trading range has been $0.59 (5.76%), that's above the last trading month's daily average range of $0.47. 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 lower than usual for MT.
In a volatile session, prices traded above the prior day's high as well as below the previous day's low, forming a bullish Outside Bar. Additionally, two candlestick patterns are matching today's price action, the White Candle which is known as bullish pattern and one bearish pattern, the Last Engulfing Top Pattern. The last time a White Candle showed up on June 25th, MT actually lost -4.42% on the following trading day.
Prices are trading close to the key technical resistance level at 10.95 (R1). After having been unable to move lower than 10.29 in the prior session, Arcelor Mittal found buyers again around the same price level today at 10.23.
The market shows weakness in the short-term (in accordance with its long-term downtrend) with only the medium-term trend still being bullish.
Among the nine market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bullish Outside Bar" stand out. Although it is usually interpreted as bullish, it has actually shown to be bearish for Arcelor Mittal. Out of 69 times, MT closed lower 53.62% 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 62.32% with an average market move of -1.84%.