ALXN breaks below Thursday's low
Alexion Pharmaceuticals Inc. (ALXN) Technical Analysis Report for Feb 14, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, ALXN finished the week 1.99% higher at 102.56 after losing $0.86 (-0.83%) today, notably underperforming the Nasdaq 100 (0.29%) ahead of tomorrow's Presidents' Day market holiday. The bears were in full control today, moving the market lower throughout the whole session. Closing below Thursday's low at 103.18, Alexion Pharmaceuticals confirmed its breakout through the previous session low after trading up to $0.62 below it intraday.
Daily Candlestick Chart (ALXN as at Feb 14, 2020):
Friday's trading range has been $1.96 (1.88%), that's below the last trading month's daily average range of $3.03. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for ALXN.
Two candlestick patterns are matching today's price action, the Bearish Short Candle and the Black Candle which are both known as bearish patterns.
Prices broke below the key technical support level at 103.32 (now R1), which is likely to act as resistance going forward. The last time this happened on January 30th, ALXN lost -0.91% on the following trading day.
Though the market is experiencing a short-term uptrend, this could just be a correction, as both the medium and long-term trends are still bearish.
Selling might speed up should prices move below the nearby swing low at 99.82 where further sell stops could get activated. With prices trading close to this year's low at 98.75, downside momentum might accelerate should the share break out to new lows for the year. As prices are trading close to February's low at 99.32, downside momentum could speed up should the stock mark new lows for the month.
Among the nine market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Closed below last periods low" stand out. While it is usually interpreted as bearish, it has actually shown to be bullish for Alexion Pharmaceuticals. Out of 447 times, ALXN closed higher 54.81% 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 59.51% with an average market move of 1.46%.