ABMD still stuck within tight trading range
ABIOMED Inc. (ABMD) Technical Analysis Report for Jul 31, 2020 | by Techniquant Editorial Team
ABMD ended the month 24.17% higher at 299.94 after gaining $1.03 (0.34%) today, slightly underperforming the S&P 500 (0.77%). Today's close at 299.94 marks the highest recorded closing price since March 25, 2019. Closing within the prior day's range, prices missed to decisively move beyond the previous day's trading range.
Daily Candlestick Chart (ABMD as at Jul 31, 2020):
Friday's trading range has been $8.71 (2.9%), that's slightly above the last trading month's daily average range of $8.69. Things look different on the weekly timeframe, where the market's trading range of the last week has been way below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for ABMD. Prices continued to consolidate within a tight trading range between 290.05 and 302.97 where it has been caught now for the whole last trading week.
Four candlestick patterns are matching today's price action, the Northern Doji which is known as bearish pattern and three neutral patterns, the Doji, the Long-Legged Doji and the Rickshaw-Man. The last time a Northern Doji showed up on July 24th, ABMD actually gained 1.94% on the following trading day.
Unable to break through the key technical resistance level at 301.11 (R1), the market closed below it after spiking up to 302.97 earlier during the day. The failure to close above the resistance could increase that levels importance going forward.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Selling might speed up should prices move below the close-by swing low at 292.29 where further sell stops could get activated.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Long-Legged Doji" stand out. Though it is usually interpreted as neutral, it has actually shown to be bullish for ABIOMED. Out of 33 times, ABMD closed higher 75.76% 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 63.64% with an average market move of 3.51%.