MTZ runs into sellers around 61.00 for the third day in a row
MasTec Inc. (MTZ) Technical Analysis Report for Feb 14, 2020 | by Techniquant Editorial Team
MTZ ended the week 6.4% higher at 60.50 after losing $0.25 (-0.41%) today on low volume, underperforming the S&P 500 (0.18%) ahead of tomorrow's Presidents' Day market holiday. Closing within the prior day's range, prices missed to decisively move beyond the previous day's trading range.
Daily Candlestick Chart (MTZ as at Feb 14, 2020):
Friday's trading range has been $1.26 (2.07%), that's slightly below the last trading month's daily average range of $1.54. 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 MTZ. Prices continued to consolidate within a tight trading range between 59.37 and 61.00 where it has been caught now for the last three trading days.
After trading down to 59.74 earlier during the day, the share bounced off the key technical support level at 59.85 (S1). The failure to close below the support could increase that levels significance as support going forward. The stock ran into sellers again today around 61.00 for the third trading day in a row after having found sellers at 60.99 in the prior session and at 60.89 two days ago. The last time this happened on February 6th, MTZ lost -0.91% on the following trading day.
While the market is experiencing a short-term uptrend, this might just be a correction, as both the medium and long-term trends are still bearish.
Among the four market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bounced off Technical Support S1" stand out. Its common bullish interpretation has been confirmed for MasTec. Out of 444 times, MTZ closed higher 55.86% 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 55.63% with an average market move of 1.14%.