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by Darius Anucauskas

Mattel’s Stock Could Be Setting Itself For Another Move Higher

The stock of one of the world’s largest toy producers, Mattel Inc (NASDAQ: MAT), so far, continues to balance in the positive territory for this year. That said, there were still three occasions in 2019, first in the beginning of January, second in the beginning of June and third in the end of August, when the price fell below its opening level, at 9.70. Since the last fall in the end of August, the stock started slowly picking up altitude again and is now trading above its short-term tentative upside support line drawn from the low of August 28th. But, given that MAT is currently trading below its 200-day EMA and the 12.00 barrier, we will wait for a clear break of that area first, before examining higher levels.

A strong push and a daily close above the above-discussed 12.00 barrier and the 200-day EMA, would confirm a forthcoming higher high and more new buyers might be joining in. The price could then rise to the 12.45 hurdle, which if broken may open the door for a further move up, potentially aiming for the 13.45 level, marked by the high of August 8th.

Our oscillators, the RSI and the MACD, are somewhat in support of the above-mentioned scenario. Although the RSI is pointing slightly lower, the indicator remains above 50. The MACD is giving us slightly better signals, as it is above zero and has recently moved fractionally above its trigger line.

On the other hand, if MAT slides all the way below the aforementioned upside support line and the 10.35 hurdle, marked near the low of last week, this could force a few existing investors to liquidate some of their current positions. The stock may then fall to 10.11 obstacle, a break of which might clear the path to the 9.45 area, which is the low of September 4th. The price could bounce back up a bit from there, but if it continues to trade below the aforementioned upside line, MAT could suffer another slide, which could potentially bring it below the 9.45 obstacle and aiming for the 9.06 level. That level marks the low of this year.

Mattel daily


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