ENDP stuck within tight trading range
Endo International plc (ENDP) Technical Analysis Report for Aug 05, 2020 | by Techniquant Editorial Team
ENDP finished Wednesday at 3.61 gaining $0.11 (3.14%), significantly outperforming the S&P 500 (0.64%). Trading up to $0.12 lower after the open, the market managed to reverse during the session as bulls took control ending the day above its opening price. Ending the day with an indecisive close, neither buyers nor sellers were able to gain control during the session.
Daily Candlestick Chart (ENDP as at Aug 05, 2020):
Wednesday's trading range has been $0.19 (5.31%), that's slightly above the last trading month's daily average range of $0.18. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for ENDP. Prices continued to consolidate within a tight trading range between 3.42 and 3.65 where it has been caught now for the last three trading days.
Two candlestick patterns are matching today's price action, the Bullish Spinning Top which is known as bullish pattern and one bearish pattern, the Hanging Man. The last time a Bullish Spinning Top showed up on July 17th, ENDP actually lost -7.76% on the following trading day.
The stock managed to close back above the 50-day moving average at 3.59. Prices are trading close to the key technical resistance level at 3.71 (R1).
While Endo International is experiencing a short-term uptrend, this could just be a correction, as both the medium and long-term trends are still bearish.
Selling might speed up should prices move below the nearby swing low at 3.42 where further sell stops could get activated.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Hanging Man" stand out. Its common bearish interpretation has been confirmed for Endo International. Out of 64 times, ENDP closed lower 64.06% 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 seven trading days, showing a win rate of 53.13% with an average market move of -1.15%.