MT breaks above 100-day moving average for the first time since June 8th
Arcelor Mittal NY Registry Shares NEW (MT) Technical Analysis Report for Jul 02, 2020 | by Techniquant Editorial Team
MT finished Thursday at 10.94 gaining $0.32 (3.01%), strongly outperforming the S&P 500 (0.45%) ahead of tomorrow's Independence Day OBS market holiday.
Daily Candlestick Chart (MT as at Jul 02, 2020):
Thursday's trading range has been $0.41 (3.67%), that's slightly below the last trading month's daily average range of $0.47. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently lower than usual for MT.
One bearish candlestick pattern matches today's price action, the Black Candle.
The stock managed to close above the 100-day moving average at 10.87 for the first time since June 8th. When this moving average was crossed above the last time on June 8th, MT actually lost -5.35% on the following trading day. Prices are trading close to the key technical resistance level at 10.95 (R1).
While still in a long-term downtrend, the short and medium-term trends both turned bullish already.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bullish Break through SMA 100" stand out. Although it is usually interpreted as bullish, it has actually shown to be bearish for Arcelor Mittal. Out of 58 times, MT closed lower 50.00% 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 62.07% with an average market move of -1.02%.