MTD unable to break through key resistance level
Mettler-Toledo International Inc. (MTD) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team
Moving higher for the 4th day in a row, MTD finished Wednesday at 988.83 gaining $7.93 (0.81%), strongly outperforming the S&P 500 (-0.46%). Trading $13.84 higher after the open, Mettler-Toledo was unable to hold its gains as the bears took control ending the day below 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 Sep 16, 2020):
Wednesday's trading range has been $17.46 (1.77%), that's below the last trading month's daily average range of $22.96. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for MTD. Prices continued to consolidate within a tight trading range between 973.60 and 1003.03 where it has been caught now for the last three trading days.
Four candlestick patterns are matching today's price action, the Gravestone Doji, the Northern Doji and the Shooting Star which are known as bearish patterns and one neutral pattern, the Doji. The last time a Shooting Star showed up on August 11th, MTD actually gained 2.75% on the following trading day.
Unable to break through the key technical resistance level at 991.48 (R1), the stock closed below it after spiking up to 1003.03 earlier during the day. The failure to close above the resistance might increase that levels significance going forward.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
With prices trading close to this year's high at 1009.07, upside momentum could speed up should the market be able to break out to new highs for the year.
Among the eight market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Shooting Star" stand out. While it is usually interpreted as bearish, it has actually shown to be bullish for Mettler-Toledo. Out of 68 times, MTD closed higher 61.76% 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 61.76% with an average market move of 0.78%.