ESPR closes below its opening price unable to hold early session gains
Esperion Therapeutics Inc. (ESPR) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team
ESPR ended Wednesday at 37.35 gaining $0.22 (0.59%) on low volume, strongly outperforming the S&P 500 (-0.46%). Trading $0.64 higher after the open, the stock was unable to hold its gains as the bears took control ending the day below its opening price. The last time this happened on September 9th, ESPR actually gained 1.47% on the following trading day. 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 Sep 16, 2020):
Wednesday's trading range has been $1.17 (3.12%), that's below the last trading month's daily average range of $1.81. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for ESPR.
Two candlestick patterns are matching today's price action, the Homing Pigeon which is known as bullish pattern and one bearish pattern, the Bearish Spinning Top.
After having been unable to move lower than 36.96 in the previous session, the share found buyers again around the same price level today at 36.92.
Although the market is experiencing a short-term uptrend, this could just be a correction, as both the medium and long-term trends are still bearish.
As prices are trading close to September's low at 34.89, downside momentum might accelerate should Esperion Therapeutics mark new lows for the month.
Among the four market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Homing Pigeon" stand out. Its common bullish interpretation has been confirmed for Esperion Therapeutics. Out of 13 times, ESPR closed higher 76.92% 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 53.85% with an average market move of 2.65%.