ENDP finds support at 20-day moving average
Endo International plc (ENDP) Technical Analysis Report for Feb 14, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, ENDP ended the week -3.61% lower at 6.15 after losing $0.05 (-0.81%) today, underperforming the S&P 500 (0.18%) ahead of tomorrow's Presidents' Day market holiday. Trading $0.25 higher after the open, the share was unable to hold its gains as the bears took control ending the day below its opening price. The last time this happened on January 22nd, ENDP actually gained 4.43% on the following trading day. Closing below Thursday's low at 6.18, Endo International confirmed its breakout through the previous session low after trading up to $0.37 below it intraday.
Daily Candlestick Chart (ENDP as at Feb 14, 2020):
Friday's trading range has been $0.70 (11.18%), that's far above the last trading month's daily average range of $0.44. Weekly volatility is also higher, being slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently lower than usual for ENDP.
Two candlestick patterns are matching today's price action, the Bearish Spinning Top and the Bearish High-Wave Candle which are both known as bearish patterns.
After trading as low as 5.81 during the day, the market found support at the 20-day moving average at 6.10.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
As prices are trading close to February's low at 5.66, downside momentum could speed up should the stock mark new lows for the month.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bullish Bounce off SMA 20" stand out. While it is usually interpreted as bullish, it has actually shown to be bearish for Endo International. Out of 59 times, ENDP closed lower 55.93% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the short side has been after 10 trading days, showing a win rate of 52.54% with an average market move of -1.68%.