ESPR closes lower for the 2nd day in a row
Esperion Therapeutics Inc. (ESPR) Technical Analysis Report for May 22, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, ESPR finished the week -4.25% lower at 43.51 after edging lower $0.41 (-0.93%) today, significantly underperforming the S&P 500 (0.24%) ahead of tomorrow's Memorial Day market holiday. 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 (ESPR as at May 22, 2020):
Friday's trading range has been $1.83 (4.19%), that's below the last trading month's daily average range of $3.07. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for ESPR.
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. The last time a Bearish Spinning Top showed up on May 6th, ESPR actually gained 8.67% on the following trading day.
After having been unable to move lower than 42.32 in the prior session, the market found buyers again around the same price level today at 42.43.
Esperion Therapeutics 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 46.09 where further buy stops could get activated. Selling might speed up should prices move below the nearby swing low at 41.68 where further sell stops could get triggered.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "2 Consecutive Lower Closes" stand out. While it is usually interpreted as bearish, it has actually shown to be bullish for Esperion Therapeutics. Out of 200 times, ESPR closed higher 54.00% 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 10 trading days, showing a win rate of 54.50% with an average market move of 1.78%.