BMRN still stuck within tight trading range
BioMarin Pharmaceutical Inc. (BMRN) Technical Analysis Report for Jun 30, 2020 | by Techniquant Editorial Team
BMRN ended the month 15.76% higher at 123.34 after gaining $1.16 (0.95%) today, notably underperforming the Nasdaq 100 (1.96%). Trading up to $1.53 lower after the open, the market managed to reverse during the session as bulls took control ending the day above its opening price. The last time this happened on June 26th, BMRN actually lost -1.48% on the following trading day. Closing within the previous day's range, prices missed to decisively move beyond the prior day's trading range in a lackluster session.
Daily Candlestick Chart (BMRN as at Jun 30, 2020):
Tuesday's trading range has been $3.26 (2.67%), that's below the last trading month's daily average range of $4.41. Weekly volatility is also lower, being 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 118.89 and 124.95 where it has been caught now for the whole last trading week.
One bullish candlestick pattern matches today's price action, the Bullish Hikkake Pattern.
Unable to break through the key technical resistance level at 123.81 (R1), the stock closed below it after spiking up to 123.92 earlier during the day. The failure to close above the resistance could increase that levels importance going forward.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Buying might speed up should prices move above the close-by swing high at 124.95 where further buy stops could get activated. Selling might accelerate should prices move below the nearby swing low at 118.89 where further sell stops could get triggered.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Close to Swing Low" stand out. Though it is usually interpreted as neutral, it has actually shown to be bullish for BioMarin Pharmaceutical. Out of 697 times, BMRN closed higher 51.22% 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 57.53% with an average market move of 1.17%.