ALKS closes below its opening price unable to hold early session gains
Alkermes plc (ALKS) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team
ALKS finished Wednesday at 17.88 flat, slightly outperforming the S&P 500 (-0.46%). Trading $0.26 higher after the open, the stock was unable to hold its gains as the bears took control ending the day below its opening price. Closing within the prior day's range, prices missed to decisively move beyond the previous day's trading range.
Daily Candlestick Chart (ALKS as at Sep 16, 2020):
Wednesday's trading range has been $0.46 (2.56%), that's slightly below the last trading month's daily average range of $0.57. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for ALKS.
After spiking up to 18.26 during the day, Alkermes plc found resistance at the 50-day moving average at 18.26. The last time this happened on April 23rd, ALKS actually gained 2.88% on the following trading day.
The market shows strength in the short-term supported by its long-term uptrend with only the medium-term trend being bearish.
Among the three market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bearish Bounce off SMA 50" stand out. Its common bearish interpretation has been confirmed for Alkermes plc. Out of 45 times, ALKS closed lower 57.78% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the short side has been after six trading days, showing a win rate of 53.33% with an average market move of -0.50%.