ALXN finds buyers around 110.70 for the forth day in a row
Alexion Pharmaceuticals Inc. (ALXN) Technical Analysis Report for Jun 30, 2020 | by Techniquant Editorial Team
ALXN ended the month -6.39% lower at 112.24 after gaining $1.02 (0.92%) today, notably underperforming the Nasdaq 100 (1.96%). Closing within the prior day's range, prices missed to decisively move beyond the previous day's trading range in a lackluster session.
Daily Candlestick Chart (ALXN as at Jun 30, 2020):
Tuesday's trading range has been $2.15 (1.94%), that's far below the last trading month's daily average range of $3.67. Weekly volatility is also lower, being way below the market's average weekly trading range. The longer-term, monthly volatility is currently strongly lower than usual for ALXN. Prices continued to consolidate within a tight trading range between 110.54 and 115.75 where it has been caught now for the whole last trading week.
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, two candlestick patterns are matching today's price action, the Bullish Short Candle and the White Candle which are both known as bullish patterns.
Buyers managed to take out the key technical resistance level at 111.99 (now S1), which is likely to act as support going forward. The share was bought again around 110.70 after having seen lows at 110.58, 110.54 and 110.75 in the last three trading sessions. Obviously there is something going on at that level. The last time this happened on March 30th, ALXN gained 2.90% on the following trading day.
While the market is currently in a short-term downtrend, this could just be a correction, as both the medium and long-term trends are still bullish.
Buying might accelerate should prices move above the nearby swing high at 114.64 where further buy stops could get triggered. Selling might speed up should prices move below the close-by swing low at 110.54 where further sell stops could get activated. As prices are trading close to June's low at 107.39, downside momentum might accelerate should the stock mark new lows for the month.
Among the eight market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Low close to previous three Lows" stand out. Its common bullish interpretation has been confirmed for Alexion Pharmaceuticals. Out of 17 times, ALXN closed higher 70.59% 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 seven trading days, showing a win rate of 64.71% with an average market move of 1.03%.