BMRN closes above its opening price after recovering from early selling pressure
BioMarin Pharmaceutical Inc. (BMRN) Technical Analysis Report for Feb 14, 2020 | by Techniquant Editorial Team
BMRN finished the week 2.82% higher at 89.01 after gaining $0.77 (0.87%) today on low volume, outperforming the Nasdaq 100 (0.29%) ahead of tomorrow's Presidents' Day market holiday. Trading up to $1.03 lower after the open, BioMarin Pharmaceutical managed to reverse during the session as bulls took control ending the day above its opening price. Closing above Thursday's high at 89.00, the market confirmed its breakout through the prior session high after trading up to $0.10 above it intraday.
Daily Candlestick Chart (BMRN as at Feb 14, 2020):
Friday's trading range has been $1.82 (2.06%), that's slightly above the last trading month's daily average range of $1.82. Things look different on the weekly timeframe, where the market's trading range of the last week has been below the market's average weekly trading range. The longer-term, monthly volatility is currently lower than usual for BMRN. Prices continued to consolidate within a tight trading range between 87.28 and 89.30 where it has been caught now for the last three trading days.
In a volatile session, prices traded above the previous day's high as well as below the prior day's low, forming a bullish Outside Bar. The last time this happened on December 12, 2019, BMRN actually lost -0.90% on the following trading day.
Prices are trading close to the key technical resistance level at 89.86 (R1). The share ran into sellers again today around 89.10 for the third trading day in a row after having found sellers at 89.00 in the previous session and at 89.30 two days ago.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Buying might accelerate should prices move above the close-by swing high at 89.30 where further buy stops could get triggered.
Among the eight market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bullish Outside Bar" stand out. Its common bullish interpretation has been confirmed for BioMarin Pharmaceutical. Out of 120 times, BMRN closed higher 56.67% 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 52.50% with an average market move of 1.05%.