MT unable to break through key resistance level
Arcelor Mittal NY Registry Shares NEW (MT) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team
Moving higher for the 4th day in a row, MT ended Wednesday at 12.96 edging higher $0.06 (0.47%), outperforming the S&P 500 (-0.46%). Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (MT as at Sep 16, 2020):
Wednesday's trading range has been $0.44 (3.43%), that's slightly above the last trading month's daily average range of $0.38. 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 MT. Prices continued to consolidate within a tight trading range between 12.55 and 13.18 where it has been caught now for the whole last trading week.
One bearish candlestick pattern matches today's price action, the Last Engulfing Top Pattern. The last time a Last Engulfing Top Pattern showed up on June 30th, MT lost -1.03% on the following trading day.
Unable to break through the key technical resistance level at 13.07 (R1), the share closed below it after spiking up to 13.18 earlier during the day. The failure to close above the resistance might increase that levels significance going forward. After having been unable to move lower than 12.70 in the previous session, Arcelor Mittal found buyers again around the same price level today at 12.74.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Selling could accelerate should prices move below the nearby swing low at 12.55 where further sell stops might get activated.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bounced off Technical Resistance R1" stand out. Its common bearish interpretation has been confirmed for Arcelor Mittal. Out of 337 times, MT closed lower 59.94% 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 55.49% with an average market move of -0.96%.