ENDP closes below its opening price unable to hold early session gains
Endo International plc (ENDP) Technical Analysis Report for Mar 15, 2019 | by Techniquant Editorial Team
ENDP ended the week -2.43% lower at 8.44 after gaining $0.04 (0.48%) today, slightly underperforming the S&P 500 (0.5%). Trading $0.16 higher after the open, the market was unable to hold its gains as the bears took control ending the day below its opening price. 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 (ENDP as at Mar 15, 2019):
Friday's trading range has been $0.23 (2.72%), that's below the last trading month's daily average range of $0.60. Weekly volatility is also lower, being way below the market's average weekly trading range. The longer-term, monthly volatility is currently higher than usual for ENDP. Prices continued to consolidate within a tight trading range between 8.26 and 8.70 where it has been caught now for the last three trading days.
Two candlestick patterns are matching today's price action, the Tweezer Bottom which is known as bullish pattern and one bearish pattern, the Bearish Spinning Top. The last time a Bearish Spinning Top showed up on February 28th, ENDP actually gained 2.27% on the following trading day.
Prices are trading close to the key technical support level at 8.26 (S1). After having been unable to move lower than 8.39 in the previous session, Endo International found buyers again around the same price level today at 8.39.
The stock shows weakness in the short-term (in accordance with its long-term downtrend) with only the medium-term trend still being bullish.
Buying might speed up should prices move above the close-by swing high at 8.70 where further buy stops could get activated. Selling might accelerate should prices move below the nearby swing low at 8.26 where further sell stops could get triggered.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Bearish Intraday Reversal" stand out. Although it is usually interpreted as bearish, it has actually shown to be bullish for Endo International. Out of 448 times, ENDP closed higher 51.12% 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 54.69% with an average market move of 0.34%.