MTD closes within previous day's range after lackluster session
Mettler-Toledo International Inc. (MTD) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team
MTD finished Thursday at 659.27 gaining $18.97 (2.96%) on high volume, significantly underperforming the S&P 500 (6.24%). Trading up to $17.20 lower after the open, the share managed to reverse during the session as bulls took control ending the day above its opening price. Closing within the prior day's range, prices failed to decisively move beyond the previous day's trading range in a lackluster session.
Daily Candlestick Chart (MTD as at Mar 26, 2020):
Thursday's trading range has been $37.93 (5.85%), that's below the last trading month's daily average range of $48.56. Things look different on the weekly timeframe, where the market's trading range of the last week has been above the market's average weekly trading range. The longer-term, monthly volatility is currently higher than usual for MTD.
Prices are trading close to the key technical resistance level at 680.11 (R1). After having been unable to move lower than 632.70 in the prior session, the market found buyers again around the same price level today at 630.95. The last time this happened on March 16th, MTD gained 9.61% on the following trading day.
Although Mettler-Toledo is experiencing a short-term uptrend, this might just be a correction, as both the medium and long-term trends are still bearish. With its 50-day moving average crossing below its 200-day moving average, the stock has entered a so-called "Death Cross" for the first time since December 31, 2019. Showing increasing downward momentum in the short and medium-term the "Death Cross" is known to indicate a potential bear market on the horizon.
Buying could speed up should prices move above the nearby swing high at 679.08 where further buy stops might get triggered.
Among the four market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Low close to previous low" stand out. Its common bullish interpretation has been confirmed for Mettler-Toledo. Out of 526 times, MTD closed higher 58.37% 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 57.98% with an average market move of 0.97%.