ALXN closes higher for the 9th day in a row
Alexion Pharmaceuticals Inc. (ALXN) Technical Analysis Report for Jan 11, 2019 | by Techniquant Editorial Team
Moving higher for the 9th day in a row, ALXN finished the week 4.84% higher at 111.13 after edging higher $0.20 (0.18%) today, slightly outperforming the Nasdaq 100 (-0.3%). Today's close at 111.13 marks the highest recorded closing price since December 13, 2018. Trading up to $1.66 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 (ALXN as at Jan 11, 2019):
Friday's trading range has been $2.51 (2.27%), that's far below the last trading month's daily average range of $4.57. Weekly volatility is also lower, being way below the market's average weekly trading range. The longer-term, monthly volatility is currently lower than usual for ALXN. Prices continued to consolidate within a tight trading range between 108.32 and 111.53 where it has been caught now for the last three trading days.
One bearish candlestick pattern matches today's price action, the Hanging Man.
After trading down to 109.02 earlier during the day, the share bounced off the key technical support level at 109.74 (S1). The failure to close below the support could increase that levels importance as support going forward. When prices bounced off a significant support level the last time on January 3rd, ALXN gained 5.78% on the following trading day. After having been unable to move lower than 108.45 in the previous session, Alexion Pharmaceuticals found buyers again around the same price level today at 109.02.
Although the market is experiencing a short-term uptrend, this might just be a correction, as both the medium and long-term trends are still bearish.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bounced off Technical Support S1" stand out. Its common bullish interpretation has been confirmed for Alexion Pharmaceuticals. Out of 460 times, ALXN closed higher 55.87% 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 61.30% with an average market move of 1.76%.