ARWR breaks above 200-day moving average for the first time since August 25th
Arrowhead Pharmaceuticals Inc. (ARWR) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team
ARWR finished Wednesday at 47.43 surging $13.63 (40.33%) on high volume, strongly outperforming the S&P 500 (-0.46%). This is the biggest single-day gain in over 14 years. The last time we've seen such an unusually strong single-day gain on August 17th, ARWR actually lost -2.54% on the following trading day. Today's close at 47.43 marks the highest recorded closing price since July 27th.
Daily Candlestick Chart (ARWR as at Sep 16, 2020):
Wednesday's trading range has been $13.07 (32.63%), that's far above the last trading month's daily average range of $2.74. Weekly volatility is also higher, being way above the market's average weekly trading range. The longer-term, monthly volatility is currently notably higher than usual for ARWR.
One bullish candlestick pattern matches today's price action, the White Candle.
The stock managed to close above the 200-day moving average at 42.18 for the first time since August 25th. Unable to break through the key technical resistance level at 52.00 (R2), the market closed below it after spiking up to 53.12 earlier during the day. The failure to close above the resistance could increase that levels importance going forward.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Among the 12 market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bullish Break through SMA 100" stand out. Although it is usually interpreted as bullish, it has actually shown to be bearish for Arrowhead. Out of 37 times, ARWR closed lower 54.05% of the time on the next trading day after the market condition occurred.