ALXN dominated by bulls lifting the market higher throughout the day
Alexion Pharmaceuticals Inc. (ALXN) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team
ALXN ended Thursday at 86.14 gaining $1.67 (1.98%), notably underperforming the Nasdaq 100 (5.72%). The bulls were in full control today, moving the market higher throughout the whole session. Closing within the prior day's range, prices failed to decisively move beyond the previous day's trading range in a lackluster session.
Daily Candlestick Chart (ALXN as at Mar 26, 2020):
Thursday's trading range has been $2.69 (3.21%), that's far below the last trading month's daily average range of $5.42. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for ALXN. Prices continued to consolidate within a tight trading range between 81.10 and 87.00 where it has been caught now for the last three trading days.
During the whole day, prices traded within the prior day's range, unable to trade above the previous day's high or below the prior day's low forming an Inside Bar. Additionally, three candlestick patterns are matching today's price action, the Bullish Short Candle and the White Candle which are both known as bullish patterns and one bearish pattern, the Last Engulfing Top Pattern. The last time a Bullish Short Candle showed up on February 21st, ALXN actually lost -3.99% on the following trading day.
Prices are trading close to the key technical resistance level at 87.00 (R1). Alexion Pharmaceuticals ran into sellers again today around 86.38 for the third trading day in a row after having found sellers at 86.76 in the previous session and at 87.00 two days ago.
Although the stock is experiencing a short-term uptrend, this might just be a correction, as both the medium and long-term trends are still bearish.
Buying could speed up should prices move above the close-by swing high at 87.00 where further buy stops might get activated.
Among the 10 market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "High close to prior High" stand out. While it is usually interpreted as bearish, it has actually shown to be bullish for Alexion Pharmaceuticals. Out of 631 times, ALXN closed higher 52.30% 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 58.16% with an average market move of 1.03%.