MTD breaks back above 100-day moving average
Mettler-Toledo International Inc. (MTD) Technical Analysis Report for May 22, 2020 | by Techniquant Editorial Team
MTD ended the week 7.1% higher at 748.31 after gaining $25.31 (3.5%) today, significantly outperforming the S&P 500 (0.24%) ahead of tomorrow's Memorial Day market holiday. Today's close at 748.31 marks the highest recorded closing price since March 4th. The bulls were in full control today, moving the market higher throughout the whole session. Closing above Thursday's high at 735.68, the stock confirmed its breakout through the previous session high after trading up to $13.78 above it intraday.
Daily Candlestick Chart (MTD as at May 22, 2020):
Friday's trading range has been $27.85 (3.86%), that's slightly above the last trading month's daily average range of $25.61. 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 slightly lower than usual for MTD.
Three candlestick patterns are matching today's price action, the White Candle which is known as bullish pattern and two bearish patterns, the Bearish Hikkake Pattern and the Last Engulfing Top Pattern.
The market managed to close back above the 100-day moving average at 731.77. When this moving average was crossed above the last time on Wednesday, MTD actually lost -1.71% on the following trading day. Prices are trading close to the key technical resistance level at 752.76 (R1).
While still in a long-term downtrend, the short and medium-term trends both turned bullish already.
Trading close to March's high at 775.37 we might see further upside momentum if potential buy stops at the level get activated.
Among the nine market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Last Engulfing Top Pattern" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for Mettler-Toledo. Out of 92 times, MTD closed higher 73.91% 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 65.22% with an average market move of 1.38%.