CRSP crashes -3.99% closing $2.32 lower
CRISPR Therapeutics AG (CRSP) Technical Analysis Report for Feb 14, 2020 | by Techniquant Editorial Team
CRSP ended the week 6.65% higher at 55.80 after tanking $2.32 (-3.99%) today, notably underperforming the S&P 500 (0.18%) ahead of tomorrow's Presidents' Day market holiday. This is the biggest single-day loss in over a month. Closing below Thursday's low at 56.54, the share confirmed its breakout through the previous session low after trading up to $1.23 below it intraday.
Daily Candlestick Chart (CRSP as at Feb 14, 2020):
Friday's trading range has been $3.74 (6.42%), that's far above the last trading month's daily average range of $2.47. Weekly volatility is also higher, being above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for CRSP.
One bearish candlestick pattern matches today's price action, the Black Candle.
After trading as low as 55.31 during the day, the stock found support at the 20-day moving average at 55.33. The last time this happened on August 2, 2019, CRSP actually lost -9.80% on the following trading day.
The market shows strength in the short-term supported by its long-term uptrend with only the medium-term trend being bearish.
With prices trading close to this year's low at 50.50, downside momentum might speed up should CRISPR Therapeutics break out to new lows for the year.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Close near low of period" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for CRISPR Therapeutics. Out of 140 times, CRSP closed higher 52.14% 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 57.14% with an average market move of 2.71%.