BMRN runs into sellers around 76.39 for the third day in a row
BioMarin Pharmaceutical Inc. (BMRN) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team
Moving higher for the 4th day in a row, BMRN finished Wednesday at 75.64 gaining $0.13 (0.17%), notably outperforming the Nasdaq 100 (-1.67%). 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 Sep 16, 2020):
Wednesday's trading range has been $1.23 (1.63%), that's below the last trading month's daily average range of $2.74. Weekly volatility is also lower, being way below the market's average weekly trading range. The longer-term, monthly volatility is currently strongly lower than usual for BMRN.
Two candlestick patterns are matching today's price action, the Bullish Spinning Top which is known as bullish pattern and one bearish pattern, the Bearish Hikkake Pattern. The last time a Bearish Hikkake Pattern showed up on August 31st, BMRN lost -2.60% on the following trading day.
BioMarin Pharmaceutical managed to close above the 20-day moving average at 75.20 for the first time since July 22nd. The stock ran into sellers again today around 76.39 for the third trading day in a row after having found sellers at 76.10 in the previous session and at 76.14 two days ago.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
As prices are trading close to September's high at 78.86, upside momentum could speed up should the share mark new highs for the month.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bearish Hikkake Pattern" stand out. While it is usually interpreted as bearish, it has actually shown to be bullish for BioMarin Pharmaceutical. Out of 119 times, BMRN closed higher 57.14% 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 56.30% with an average market move of 0.81%.