ALXN closes higher for the 3rd day in a row
Alexion Pharmaceuticals Inc. (ALXN) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, ALXN finished Wednesday at 116.57 gaining $0.99 (0.86%), strongly outperforming the Nasdaq 100 (-1.67%). Today's close at 116.57 marks the highest recorded closing price since June 22nd. Closing within the prior day's range, prices failed to decisively move beyond the previous day's trading range.
Daily Candlestick Chart (ALXN as at Sep 16, 2020):
Wednesday's trading range has been $3.84 (3.33%), that's slightly below the last trading month's daily average range of $3.99. Things look different on the weekly timeframe, where the market's trading range of the last week has been way above the market's average weekly trading range. The longer-term, monthly volatility is currently significantly higher than usual for ALXN.
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.
After trading down to 114.12 earlier during the day, Alexion Pharmaceuticals bounced off the key technical support level at 114.49 (S1). The failure to close below the support might increase that levels significance as support going forward. When prices bounced off a significant support level the last time on September 11th, ALXN gained 3.19% on the following trading day. Prices are trading close to the key technical resistance level at 118.00 (R1).
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
With prices trading close to this year's high at 121.50, upside momentum could speed up should the stock be able to break out to new highs for the year.
Among the two 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 445 times, ALXN closed higher 54.38% 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 56.85% with an average market move of 1.43%.