EBS closes lower for the 2nd day in a row
Emergent Biosolutions Inc. (EBS) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, EBS ended Wednesday at 102.34 edging lower $0.42 (-0.41%), but still slightly outperforming the S&P 500 (-0.46%). Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range in a lackluster session.
Daily Candlestick Chart (EBS as at Sep 16, 2020):
Wednesday's trading range has been $2.50 (2.42%), that's far below the last trading month's daily average range of $5.12. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for EBS.
Though Emergent Biosolutions is currently in a short-term downtrend, this could just be a correction, as both the medium and long-term trends are still bullish.
Buying might accelerate should prices move above the nearby swing high at 106.71 where further buy stops could get activated. Selling might speed up should prices move below the close-by swing low at 98.08 where further sell stops could get triggered. As prices are trading close to September's low at 98.01, downside momentum might accelerate should the stock mark new lows for the month.
Among the three market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Close to Swing High" stand out. While it is usually interpreted as neutral, it has actually shown to be bullish for Emergent Biosolutions. Out of 801 times, EBS closed higher 50.56% 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 56.93% with an average market move of 0.92%.