CLVS closes lower for the 2nd day in a row
Clovis Oncology Inc. (CLVS) Technical Analysis Report for Feb 14, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, CLVS ended the week 1.51% higher at 9.44 after losing $0.27 (-2.78%) today, significantly underperforming the S&P 500 (0.18%) ahead of tomorrow's Presidents' Day market holiday. Ending the day with an indecisive close, neither buyers nor sellers were able to gain control during the session.
Daily Candlestick Chart (CLVS as at Feb 14, 2020):
Friday's trading range has been $0.89 (9.2%), that's above the last trading month's daily average range of $0.73. 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 lower than usual for CLVS.
One bullish candlestick pattern matches today's price action, the Bullish Hikkake Pattern.
After trading as low as 9.00 during the day, the share found support at the 20-day moving average at 9.21. The last time this happened on December 5, 2019, CLVS gained 8.47% on the following trading day. Clovis Oncology closed back below the 200-day moving average at 9.63.
The stock shows strength in the short-term supported by its long-term uptrend with only the medium-term trend being bearish.
Buying could speed up should prices move above the nearby swing high at 10.24 where further buy stops might get triggered. With prices trading close to this year's high at 11.28, upside momentum could accelerate should the market be able to break out to new highs for the year. With prices trading close to this year's low at 8.09, downside momentum might speed up should CLVS break out to new lows for the year. As prices are trading close to February's low at 8.27, downside momentum could accelerate should the share mark new lows for the month.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bearish Break through SMA 200" stand out. While it is usually interpreted as bearish, it has actually shown to be bullish for Clovis Oncology. Out of 16 times, CLVS closed higher 56.25% 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 56.25% with an average market move of 3.80%.