ENDP pops to highest close since August 17th
Endo International plc (ENDP) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team
Moving higher for the 4th day in a row, ENDP ended Wednesday at 3.16 gaining $0.12 (3.95%), notably outperforming the S&P 500 (-0.46%). Today's close at 3.16 marks the highest recorded closing price since August 17th. Closing above Tuesday's high at 3.08, the share confirmed its breakout through the previous session high after trading up to $0.17 above it intraday.
Daily Candlestick Chart (ENDP as at Sep 16, 2020):
Wednesday's trading range has been $0.25 (8.25%), that's far above the last trading month's daily average range of $0.17. Weekly volatility is also higher, being above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for ENDP.
One bullish candlestick pattern matches today's price action, the White Candle.
Buyers managed to take out the key technical resistance level at 3.07 (now S1), which is likely to act as support going forward. After spiking up to 3.25 during the day, the market found resistance at the 50-day moving average at 3.18. The last time this happened on January 10th, ENDP actually gained 4.18% on the following trading day.
Crossing above the upper Bollinger Band for the first time since June 9th, prices have shown unusually strong upward momentum in the short-term. This might either indicate a potential buying climax after which prices could head back down towards the mean of the Bollinger Bands at 2.90 or signal the beginning of a strong momentum breakout leading to even higher prices.
While Endo International is experiencing a short-term uptrend, this might just be a correction, as both the medium and long-term trends are still bearish.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bearish Bounce off SMA 50" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for Endo International. Out of 32 times, ENDP closed higher 75.00% 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 three trading days, showing a win rate of 53.13% with an average market move of 0.98%.