BMRN dominated by bulls lifting the market higher throughout the day
BioMarin Pharmaceutical Inc. (BMRN) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, BMRN ended Thursday at 82.64 gaining $2.17 (2.7%) on low volume, significantly underperforming the Nasdaq 100 (5.72%). The bulls were in full control today, moving the market higher throughout the whole session. Closing within the prior day's range, prices failed to decisively move beyond the previous day's trading range in a lackluster session.
Daily Candlestick Chart (BMRN as at Mar 26, 2020):
Thursday's trading range has been $3.99 (5.0%), that's below the last trading month's daily average range of $5.45. Things look different on the weekly timeframe, where the market's trading range of the last week has been above the market's average weekly trading range. The longer-term, monthly volatility is currently strongly higher than usual for BMRN.
Two candlestick patterns are matching today's price action, the Bullish Short Candle and the White Candle which are both known as bullish patterns.
After trading down to 79.03 earlier during the day, BioMarin Pharmaceutical bounced off the key technical support level at 79.21 (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 March 12th, BMRN gained 10.14% on the following trading day. Unable to break through the key technical resistance level at 82.83 (R1), the market closed below it after spiking up to 83.02 earlier during the day. The failure to close above the resistance could increase that levels importance going forward. After having been unable to move above 82.91 in the prior session, the share ran into sellers again around the same price level today, failing to move higher than 83.02.
The stock shows strength in the short-term supported by its long-term uptrend with only the medium-term trend being bearish.
Among the nine 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 BioMarin Pharmaceutical. Out of 468 times, BMRN closed higher 54.70% 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 56.62% with an average market move of 0.80%.