MTD runs into sellers around 577.78 for the third day in a row
Mettler-Toledo International Inc. (MTD) Technical Analysis Report for Jan 11, 2019 | by Techniquant Editorial Team
Moving higher for the 6th day in a row, MTD finished the week 9.45% higher at 576.96 after edging higher $0.67 (0.12%) today on low volume, slightly outperforming the S&P 500 (-0.01%). Today's close at 576.96 marks the highest recorded closing price since December 14, 2018. Trading up to $5.18 lower after the open, the market managed to reverse during the session as bulls took control ending the day above its opening price. Closing within the previous day's range, prices missed to decisively move beyond the prior day's trading range in a lackluster session.
Daily Candlestick Chart (MTD as at Jan 11, 2019):
Friday's trading range has been $6.77 (1.17%), that's far below the last trading month's daily average range of $17.12. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for MTD. Prices continued to consolidate within a tight trading range between 559.84 and 578.17 where it has been caught now for the last three trading days.
During the whole day, prices traded within the previous day's range, unable to trade above the prior day's high or below the previous day's low forming an Inside Bar. Additionally, two candlestick patterns are matching today's price action, the Bullish Spinning Top which is known as bullish pattern and one bearish pattern, the Hanging Man. The last time a Bullish Spinning Top showed up on October 9, 2018, MTD actually lost -3.98% on the following trading day.
Prices are trading close to the key technical support level at 568.61 (S1). The share ran into sellers again today around 577.78 for the third trading day in a row after having found sellers at 578.17 in the prior session and at 577.63 two days ago.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Buying could accelerate should prices move above the close-by swing high at 578.17 where further buy stops might get triggered.
Among the nine market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "High close to previous two Highs" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for Mettler-Toledo. Out of 146 times, MTD closed higher 56.16% 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 62.33% with an average market move of 1.26%.