ESPR rises to highest close since March 5th
Esperion Therapeutics Inc. (ESPR) Technical Analysis Report for Jun 30, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, ESPR finished the month 21.1% higher at 51.31 after surging $3.67 (7.7%) today, strongly outperforming the S&P 500 (1.54%). This is the biggest single-day gain in over four months. Today's close at 51.31 marks the highest recorded closing price since March 5th. The bulls were in full control today, moving the market higher throughout the whole session. Closing above Monday's high at 48.25, the share confirmed its breakout through the prior session high after trading up to $3.53 above it intraday.
Daily Candlestick Chart (ESPR as at Jun 30, 2020):
Tuesday's trading range has been $4.67 (9.82%), that's far above the last trading month's daily average range of $2.85. Weekly volatility is also higher, being slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for ESPR.
One bullish candlestick pattern matches today's price action, the White Candle.
Buyers managed to take out the key technical resistance level at 49.95 (now S1), which is likely to act as support going forward.
Crossing above the upper Bollinger Band for the first time since May 12th, 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 45.55 or signal the beginning of a strong momentum breakout leading to even higher prices. The last time prices broke out above the upper Bollinger Band on May 7th, ESPR gained 5.55% on the following trading day.
While still in a long-term downtrend, the short and medium-term trends both turned bullish already.
Further buying might move prices higher should the market test May's close-by high at 53.00.
Among the 12 market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "2 Consecutive Higher Closes" stand out. Its common bullish interpretation has been confirmed for Esperion Therapeutics. Out of 216 times, ESPR closed higher 52.78% 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 57.87% with an average market move of 3.14%.