FOLD closes below its opening price unable to hold early session gains
Amicus Therapeutics Inc. (FOLD) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team
FOLD finished Thursday at 9.44 losing $0.45 (-4.55%), strongly underperforming the S&P 500 (6.24%). Trading $0.94 higher after the open, the market was unable to hold its gains as the bears took control ending the day below its opening price. Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (FOLD as at Mar 26, 2020):
Thursday's trading range has been $1.67 (16.87%), that's far above the last trading month's daily average range of $0.97. Weekly volatility is also higher, being above the market's average weekly trading range. The longer-term, monthly volatility is currently notably higher than usual for FOLD.
After trading down to 9.17 earlier during the day, Amicus Therapeutics bounced off the key technical support level at 9.21 (S1). The failure to close below the support could increase that levels significance as support going forward. The stock closed back below the 100-day moving average at 9.59. When this moving average was crossed below the last time on March 6th, FOLD lost -11.91% on the following trading day. The share found buyers again today around 9.17 for the third trading day in a row after having found demand at 9.04 in the previous session and at 9.00 two days ago.
FOLD shows strength in the short-term supported by its long-term uptrend with only the medium-term trend being bearish.
Among the 10 market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bounced off Technical Resistance R2" stand out. While it is usually interpreted as bearish, it has actually shown to be bullish for Amicus Therapeutics. Out of 14 times, FOLD closed higher 57.14% 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 57.14% with an average market move of 3.17%.