ENDP stuck within tight trading range
Endo International plc (ENDP) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team
ENDP finished Thursday at 3.77 gaining $0.14 (3.86%) on low volume, significantly underperforming the S&P 500 (6.24%). Closing within the prior day's range, prices missed to decisively move beyond the previous day's trading range.
Daily Candlestick Chart (ENDP as at Mar 26, 2020):
Thursday's trading range has been $0.51 (13.9%), that's slightly below the last trading month's daily average range of $0.54. Weekly volatility is also lower, being way below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for ENDP. Prices continued to consolidate within a tight trading range between 3.35 and 4.06 where it has been caught now for the last three trading days.
One bullish candlestick pattern matches today's price action, the Bullish Spinning Top. The last time a Bullish Spinning Top showed up on March 12th, ENDP gained 11.33% on the following trading day.
Prices are trading close to the key technical support level at 3.36 (S1). After spiking up to 4.06 during the day, the share found resistance at the 20-day moving average at 3.92. After having been unable to move above 4.01 in the prior session, Endo International ran into sellers again around the same price level today, failing to move higher than 4.06.
Although the market is experiencing a short-term uptrend, this could just be a correction, as both the medium and long-term trends are still bearish.
Among the three market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bearish Bounce off SMA 20" stand out. Its common bearish interpretation has been confirmed for Endo International. Out of 61 times, ENDP closed lower 52.46% 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 50.82% with an average market move of -0.50%.