BMRN stuck within tight trading range
BioMarin Pharmaceutical Inc. (BMRN) Technical Analysis Report for Mar 15, 2019 | by Techniquant Editorial Team
BMRN ended the week 5.05% higher at 94.53 after edging higher $0.03 (0.03%) today, underperforming the Nasdaq 100 (0.88%). Trading up to $1.28 lower after the open, the market managed to reverse during the session as bulls took control ending the day above its opening price. 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 (BMRN as at Mar 15, 2019):
Friday's trading range has been $1.67 (1.77%), that's below the last trading month's daily average range of $2.64. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for BMRN. Prices continued to consolidate within a tight trading range between 93.08 and 95.85 where it has been caught now for the last three trading days.
Two candlestick patterns are matching today's price action, the Bullish Spinning Top which is known as bullish pattern and one bearish pattern, the Hanging Man.
After trading as low as 93.12 during the day, the stock found support at the 100-day moving average at 93.37. The last time this happened on January 22nd, BMRN actually lost -2.17% on the following trading day. Prices are trading close to the key technical resistance level at 95.00 (R1).
The share shows weakness in the short-term (in accordance with its long-term downtrend) with only the medium-term trend still being bullish.
Buying might speed up should prices move above the close-by swing high at 95.85 where further buy stops could get triggered. As prices are trading close to March's high at 96.20, upside momentum might accelerate should BioMarin Pharmaceutical mark new highs for the month.
Among the eight market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Hanging Man" stand out. Its common bearish interpretation has been confirmed for BioMarin Pharmaceutical. Out of 54 times, BMRN closed lower 59.26% 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 six trading days, showing a win rate of 53.70% with an average market move of -0.36%.