MTD closes above its opening price after recovering from early selling pressure
Mettler-Toledo International Inc. (MTD) Technical Analysis Report for Jul 31, 2020 | by Techniquant Editorial Team
MTD ended the month 16.07% higher at 935.00 after surging $39.83 (4.45%) today on high volume, strongly outperforming the S&P 500 (0.77%) following Thursday's earnings report. This is the biggest single-day gain in over three months. Today's close at 935.00 marks the highest recorded closing price ever. Trading up to $22.93 lower after the open, the share managed to reverse during the session as bulls took control ending the day above its opening price. Ending the day with an indecisive close, neither buyers nor sellers were able to gain control during the session.
Daily Candlestick Chart (MTD as at Jul 31, 2020):
MTD reported earnings of $5.29 per share after Thursday's market close. With analysts having expected an EPS of $4.26, Mettler-Toledo International Inc. topped market expectations by 24.2%. The company's last earnings report was released on May 7, 2020, when Mettler-Toledo International Inc. reported earnings of $4.0 per share meeting market expectations.
Friday's trading range has been $53.48 (5.79%), that's far above the last trading month's daily average range of $21.15. Weekly volatility is also higher, being way above the market's average weekly trading range. The longer-term, monthly volatility is currently higher than usual for MTD.
One bullish candlestick pattern matches today's price action, the Bullish Spinning Top.
Crossing above the upper Bollinger Band for the first time since July 15th, prices have shown unusually strong upward momentum in the short-term. This could either indicate a potential buying climax after which prices might head back down towards the mean of the Bollinger Bands at 862.78 or signal the beginning of a strong momentum breakout leading to even higher prices. The last time prices broke out above the upper Bollinger Band on July 14th, MTD gained 2.32% on the following trading day.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Among the 11 market conditions that our pattern recognition engine identified today, the statistics for the Stock Earning Report based market condition "Trading Day post strong Earnings Report" stand out. While it is usually interpreted as neutral, it has actually shown to be bearish for Mettler-Toledo. Out of 28 times, MTD closed lower 67.86% 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 nine trading days, showing a win rate of 50.00% with an average market move of -0.18%.