ABMD closes above its opening price after recovering from early selling pressure
ABIOMED Inc. (ABMD) Technical Analysis Report for Jun 30, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, ABMD ended the month 7.89% higher at 241.56 after gaining $1.34 (0.56%) today, underperforming the S&P 500 (1.54%). Trading up to $2.90 lower after the open, the stock managed to reverse during the session as bulls took control ending the day above 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 (ABMD as at Jun 30, 2020):
Tuesday's trading range has been $5.38 (2.24%), that's far below the last trading month's daily average range of $8.84. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently notably lower than usual for ABMD. Prices continued to consolidate within a tight trading range between 234.39 and 243.34 where it has been caught now for the last three trading days.
Regardless of a weak opening the market managed to close above the previous day's open and close, forming a bullish Engulfing Candle. The last time this candlestick pattern showed up on May 15th, ABMD gained 3.31% on the following trading day.
Prices are trading close to the key technical resistance level at 242.67 (R1). After having been unable to move above 241.62 in the prior session, ABIOMED ran into sellers again around the same price level today, missing to move higher than 242.56.
Though the share is currently in a short-term downtrend, this could just be a correction, as both the medium and long-term trends are still bullish.
Buying might accelerate should prices move above the nearby swing high at 243.34 where further buy stops could get triggered. Selling might speed up should prices move below the close-by swing low at 234.39 where further sell stops could get activated.
Among the eight market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Bullish Intraday Reversal" stand out. Its common bullish interpretation has been confirmed for ABIOMED. Out of 502 times, ABMD closed higher 54.98% 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 59.76% with an average market move of 1.90%.