ENDP closes within previous day's range after lackluster session
Endo International plc (ENDP) Technical Analysis Report for May 22, 2020 | by Techniquant Editorial Team
ENDP finished the week 1.31% higher at 3.86 after losing $0.05 (-1.28%) today on low volume, notably underperforming the S&P 500 (0.24%) ahead of tomorrow's Memorial Day market holiday. Trading $0.06 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 Tuesday, ENDP lost -4.27% on the following trading day. Closing within the previous day's range, prices missed to decisively move beyond the prior day's trading range in a lackluster session.
Daily Candlestick Chart (ENDP as at May 22, 2020):
Friday's trading range has been $0.17 (4.36%), that's far below the last trading month's daily average range of $0.30. 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 ENDP.
During the whole day, prices traded within the previous day's range, unable to trade above the prior day's high or below the previous day's low forming an Inside Bar. Additionally, one bearish candlestick pattern matches today's price action, the Bearish Spinning Top.
Prices are trading close to the key technical resistance level at 4.03 (R1). The stock found buyers again today around 3.79 for the third trading day in a row after having found demand at 3.76 in the prior session and at 3.79 two days ago.
The market shows weakness in the short-term (in accordance with its long-term downtrend) with only the medium-term trend still being bullish.
Buying might accelerate should prices move above the close-by swing high at 4.10 where further buy stops could get activated. Selling might speed up should prices move below the nearby swing low at 3.76 where further sell stops could get triggered.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Low close to previous low" stand out. Its common bullish interpretation has been confirmed for Endo International. Out of 603 times, ENDP closed higher 51.08% 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 52.90% with an average market move of 0.40%.