BMRN finds buyers at key support level
BioMarin Pharmaceutical Inc. (BMRN) Technical Analysis Report for May 22, 2020 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, BMRN ended the week 4.02% higher at 97.51 after gaining $2.66 (2.8%) today, strongly outperforming the Nasdaq 100 (0.38%) ahead of tomorrow's Memorial Day market holiday. Today's close at 97.51 marks the highest recorded closing price since April 27th. Closing above Thursday's high at 95.52, BioMarin Pharmaceutical confirmed its breakout through the previous session high after trading up to $2.74 above it intraday.
Daily Candlestick Chart (BMRN as at May 22, 2020):
Friday's trading range has been $4.51 (4.77%), that's slightly above the last trading month's daily average range of $4.02. 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.
One bullish candlestick pattern matches today's price action, the White Candle.
After trading down to 93.75 earlier during the day, the market bounced off the key technical support level at 94.34 (S1). The failure to close below the support could increase that levels significance as support going forward. When prices bounced off a significant support level the last time on May 14th, BMRN gained 2.12% on the following trading day.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
With prices trading close to this year's high at 100.75, upside momentum might accelerate should the share be able to break out to new highs for the year.
Among the seven 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 473 times, BMRN closed higher 55.18% 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 56.87% with an average market move of 0.83%.