MTDR finds support at 20-day moving average
Matador Resources Company (MTDR) Technical Analysis Report for Jul 31, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, MTDR finished the month 2.12% higher at 8.68 after losing $0.25 (-2.8%) today, strongly underperforming the S&P 500 (0.77%). Closing within the prior day's range, prices missed to decisively move beyond the previous day's trading range in a lackluster session.
Daily Candlestick Chart (MTDR as at Jul 31, 2020):
Friday's trading range has been $0.50 (5.68%), that's below the last trading month's daily average range of $0.60. 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 MTDR.
One bullish candlestick pattern matches today's price action, the Hammer. The last time a Hammer showed up on June 12th, MTDR gained 6.69% on the following trading day.
After trading as low as 8.32 during the day, the stock found support at the 20-day moving average at 8.62. Prices broke below the key technical support level at 8.69 (now R1), which is likely to act as resistance going forward.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Hammer" stand out. Its common bullish interpretation has been confirmed for Matador Resources. Out of 21 times, MTDR closed higher 57.14% 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 nine trading days, showing a win rate of 61.90% with an average market move of 1.08%.