ESPR dominated by bears dragging the market lower throughout the day
Esperion Therapeutics Inc. (ESPR) Technical Analysis Report for Jul 31, 2020 | by Techniquant Editorial Team
ESPR ended the month -26.66% lower at 37.63 after losing $2.15 (-5.4%) today on high volume, notably underperforming the S&P 500 (0.77%). Today's close at 37.63 marks the lowest recorded closing price since May 1st. The bears were in full control today, moving the market lower throughout the whole session. Closing below Thursday's low at 38.09, the stock confirmed its breakout through the prior session low after trading up to $0.88 below it intraday.
Daily Candlestick Chart (ESPR as at Jul 31, 2020):
Friday's trading range has been $2.79 (7.01%), that's above the last trading month's daily average range of $2.23. 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 higher than usual for ESPR.
Two candlestick patterns are matching today's price action, the Last Engulfing Bottom Pattern which is known as bullish pattern and one bearish pattern, the Black Candle.
Prices are trading close to the key technical support level at 36.52 (S1). Prices broke below the key technical support level at 39.59 (now R1), which is likely to act as resistance going forward. The last time this happened on July 24th, ESPR actually gained 2.23% on the following trading day. After having been unable to move above 40.29 in the previous session, the share ran into sellers again around the same price level today, missing to move higher than 40.00.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Trading close to May's low at 36.52 we might see further downside momentum if potential sell stops at the level get activated.
Among the nine market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Price broke through Technical Support S1" stand out. Although it is usually interpreted as bearish, it has actually shown to be bullish for Esperion Therapeutics. Out of 194 times, ESPR closed higher 55.67% 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 59.28% with an average market move of 1.82%.