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by Darius Anucauskas

Can Mattel Stock Attract More Buyers Again?

After a strong tumble in mid-February this year, Mattel Inc stock (NASDAQ: MAT) drifted lower, trading below a medium-term downside resistance line taken from the high of March 4th. But recently, after reversing higher in the beginning of June, the share price moved up and then formed a higher low, showing willingness to make its way further north. The stock is also trading now above a short-term tentative upside support line drawn from the low of June 3rd. Given that MAT is currently balancing between the two above-mentioned lines, we will remain cautious and wait for a clear break through one of our key levels, before we examine a further directional move.

A break of the medium-term downside line and a rate-rise above the 12.14 barrier, marked by the highest point of June, could attract more buying interest, as it may spark hope in the eyes of new investors. MAT could then travel to the 12.63 obstacle, or even to the 13.14 zone, marked by the high of April 29th. The stock might get held there temporarily, or even correct slightly lower. But if the price stays above the 12.14 hurdle, we will stay confident about the short-term upside potential and will continue targeting higher areas. Another strong push up, bypassing the 13.14 barrier, could send MAT to the 13.75 level, which is near the highs of April 5th, 8th and 12th.

Our oscillators, the RSI and the MACD, are somewhat in support of the upside. The RSI is slightly above 50 and carefully points to the upside. The MACD is somewhat flat, although now it sits above zero and its trigger line.

Alternatively, a break of the previously-mentioned upside support line and a price-fall below the 10.34 hurdle, marked by the low of June 25th, could open the door to some lower support levels, one of which could be the 9.59 zone. That zone marks the lowest point of June, which if broken may send MAT further down. That is when we will consider the next possible support area between the 9.08 and 9.26 levels, marked by the lows of December 26th and January 3rd.

Mattel daily


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