EBS dominated by bulls lifting the market higher throughout the day
Emergent Biosolutions Inc. (EBS) Technical Analysis Report for Jul 31, 2020 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, EBS finished the month 40.67% higher at 111.24 after surging $14.22 (14.66%) today, significantly outperforming the S&P 500 (0.77%) following Thursday's earnings report. This is the biggest single-day gain ever recorded for the stock. Today's close at 111.24 marks the highest recorded closing price ever. The bulls were in full control today, moving the market higher throughout the whole session.
Daily Candlestick Chart (EBS as at Jul 31, 2020):
EBS reported earnings of $1.98 per share after Thursday's market close. With analysts having expected an EPS of $0.53, Emergent Biosolutions Inc. surpassed market expectations by 273.6%. The company's last earnings report was released on April 30, 2020, when Emergent Biosolutions Inc. reported earnings of $0.01 per share topping market expectations by 150.0%.
Friday's trading range has been $10.50 (10.13%), that's far above the last trading month's daily average range of $4.93. Weekly volatility is also higher, being way above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for EBS.
One bullish candlestick pattern matches today's price action, the White Candle.
Buyers managed to take out the key technical resistance level at 107.16 (now S1), which is likely to act as support going forward.
Crossing above the upper Bollinger Band for the first time since July 9th, prices have shown unusually strong upward momentum in the short-term. This could either indicate a potential buying climax after which prices might head back down towards the mean of the Bollinger Bands at 95.35 or signal the beginning of a strong momentum breakout leading to even higher prices. The last time prices broke out above the upper Bollinger Band on July 6th, EBS gained 4.31% on the following trading day.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Among the 13 market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "3 Consecutive Higher Closes" stand out. Its common bullish interpretation has been confirmed for Emergent Biosolutions. Out of 154 times, EBS closed higher 51.95% 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 66.23% with an average market move of 1.79%.