ESPR runs into sellers around 39.52 for the third day in a row
Esperion Therapeutics Inc. (ESPR) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team
ESPR ended Thursday at 37.39 edging higher $0.15 (0.4%) on low volume, significantly underperforming the S&P 500 (6.24%). Trading $1.90 higher after the open, the stock was unable to hold its gains as the bears took control ending the day below its opening price. 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 (ESPR as at Mar 26, 2020):
Thursday's trading range has been $2.65 (7.04%), that's far below the last trading month's daily average range of $4.41. Weekly volatility is also lower, being way below the market's average weekly trading range. The longer-term, monthly volatility is currently lower than usual for ESPR. Prices continued to consolidate within a tight trading range between 35.45 and 39.52 where it has been caught now for the last three trading days.
One bearish candlestick pattern matches today's price action, the Bearish Spinning Top.
Unable to break through the key technical resistance level at 39.46 (R1), the market closed below it after spiking up to 39.52 earlier during the day. The failure to close above the resistance might increase that levels significance going forward. When prices bounced off a significant resistance level the last time on March 10th, ESPR lost -8.23% on the following trading day. Esperion Therapeutics ran into sellers again today around 39.52 for the third trading day in a row after having found sellers at 38.85 in the prior session and at 39.39 two days ago.
Although the share 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 accelerate should prices move below the close-by swing low at 35.45 where further sell stops could get activated.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "High close to previous two Highs" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for Esperion Therapeutics. Out of 88 times, ESPR closed higher 57.95% 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 65.91% with an average market move of 2.79%.