ENDP pushes through key technical resistance level
Endo International plc (ENDP) Technical Analysis Report for Jul 10, 2020 | by Techniquant Editorial Team
ENDP finished the week -1.43% lower at 3.44 after gaining $0.08 (2.38%) today, significantly outperforming the S&P 500 (1.05%). The bulls were in full control today, moving the market higher throughout the whole session. Closing within the prior day's range, prices failed to decisively move beyond the previous day's trading range in a lackluster session.
Daily Candlestick Chart (ENDP as at Jul 10, 2020):
Friday's trading range has been $0.17 (5.14%), that's below the last trading month's daily average range of $0.26. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for ENDP.
Notwithstanding a weak opening the stock managed to close above the prior day's open and close, forming a bullish Engulfing Candle. Additionally, one bullish candlestick pattern matches today's price action, the White Candle.
Buyers managed to take out the key technical resistance level at 3.40 (now S1), which is likely to act as support going forward. The last time this happened on June 15th, ENDP gained 4.51% on the following trading day. After having been unable to move lower than 3.30 in the previous session, the market found buyers again around the same price level today at 3.28.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Further selling could move prices lower should the market test June's close-by low at 3.23.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Low close to prior low" stand out. Its common bullish interpretation has been confirmed for Endo International. Out of 607 times, ENDP closed higher 51.07% 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 52.39% with an average market move of 0.38%.