AZN breaks below Thursday's low
Astrazeneca PLC (AZN) Technical Analysis Report for Jul 31, 2020 | by Techniquant Editorial Team
AZN finished the month 5.46% higher at 55.78 after losing $2.11 (-3.64%) today, significantly underperforming the S&P 500 (0.77%). The bears were in full control today, moving the market lower throughout the whole session. Closing below Thursday's low at 56.75, the stock confirmed its breakout through the previous session low after trading up to $1.40 below it intraday.
Daily Candlestick Chart (AZN as at Jul 31, 2020):
Friday's trading range has been $2.60 (4.5%), that's above the last trading month's daily average range of $1.77. Things look different on the weekly timeframe, where the market's trading range of the last week has been way below the market's average weekly trading range. The longer-term, monthly volatility is currently higher than usual for AZN.
In a volatile session, prices traded above the prior day's high as well as below the previous day's low, forming a bearish Outside Bar. Additionally, one bearish candlestick pattern matches today's price action, the Black Candle.
The market closed below the 20-day moving average at 56.06 for the first time since July 13th. After having been unable to move above 57.94 in the prior session, the share ran into sellers again around the same price level today, failing to move higher than 57.95. The last time this happened on Wednesday, AZN actually gained 2.21% on the following trading day.
Although Astrazeneca PLC is currently in a short-term downtrend, this could just be a correction, as both the medium and long-term trends are still bullish.
Among the nine market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bearish Break through SMA 20" stand out. Its common bearish interpretation has been confirmed for Astrazeneca PLC. Out of 142 times, AZN closed lower 52.11% 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 61.27% with an average market move of -0.20%.