ALXN finds buyers at key support level
Alexion Pharmaceuticals Inc. (ALXN) Technical Analysis Report for May 22, 2020 | by Techniquant Editorial Team
ALXN ended the week -0.43% lower at 101.50 after gaining $0.36 (0.36%) today on low volume, slightly underperforming the Nasdaq 100 (0.38%) ahead of tomorrow's Memorial Day market holiday. Trading up to $0.84 lower after the open, the share 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 May 22, 2020):
Friday's trading range has been $1.78 (1.76%), that's far below the last trading month's daily average range of $3.20. Weekly volatility is also lower, being way below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for ALXN.
During the whole day, prices traded within the previous day's range, unable to trade above the prior day's high or below the previous day's low forming an Inside Bar. After moving lower in the prior session, the stock managed to close higher but below the previous day's open, forming a bullish Harami Candle. Additionally, one bullish candlestick pattern matches today's price action, the Bullish Spinning Top. The last time a Bullish Spinning Top showed up on May 13th, ALXN actually lost -1.49% on the following trading day.
After trading down to 100.37 earlier during the day, the market bounced off the key technical support level at 100.95 (S1). The failure to close below the support could increase that levels importance as support going forward. After having been unable to move lower than 100.04 in the prior session, Alexion Pharmaceuticals found buyers again around the same price level today at 100.37.
Though still in a long-term downtrend, the short and medium-term trends both turned bullish already.
Buying might speed up should prices move above the nearby swing high at 105.29 where further buy stops could get triggered. Selling might accelerate should prices move below the close-by swing low at 100.04 where further sell stops could get activated. As prices are trading close to May's high at 106.84, upside momentum might speed up should ALXN mark new highs for the month.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bullish Harami Candle" stand out. Although it is usually interpreted as bullish, it has actually shown to be bearish for Alexion Pharmaceuticals. Out of 51 times, ALXN closed lower 68.63% 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 10 trading days, showing a win rate of 56.86% with an average market move of -1.28%.