BPMC closes below its opening price unable to hold early session gains
Blueprint Medicines Corporation (BPMC) Technical Analysis Report for Jul 31, 2020 | by Techniquant Editorial Team
BPMC finished the month -6.18% lower at 73.18 after losing $0.71 (-0.96%) today, significantly underperforming the S&P 500 (0.77%). Today's close at 73.18 marks the lowest recorded closing price since June 15th. Trading $1.52 higher after the open, the market was unable to hold its gains as the bears took control ending the day below its opening price. The last time this happened on Tuesday, BPMC lost -0.55% on the following trading day. Closing within the previous day's range, prices missed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (BPMC as at Jul 31, 2020):
Friday's trading range has been $2.83 (3.82%), that's slightly above the last trading month's daily average range of $2.82. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for BPMC.
Prices are trading close to the key technical support level at 71.99 (S1).
Although the share is currently in a short-term downtrend, this could just be a correction, as both the medium and long-term trends are still bullish.
Selling might speed up should prices move below the close-by swing low at 71.83 where further sell stops could get triggered.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the Technical Indicators based market condition "RSI(2) below 20" stand out. Its common bullish interpretation has been confirmed for Blueprint Medicines. Out of 142 times, BPMC closed higher 57.75% 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 61.27% with an average market move of 3.45%.