HRTX pushes through key technical resistance level
Heron Therapeutics Inc. (HRTX) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team
HRTX ended Thursday at 11.99 gaining $0.76 (6.77%), outperforming the S&P 500 (6.24%). 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 (HRTX as at Mar 26, 2020):
Thursday's trading range has been $0.95 (8.33%), that's below the last trading month's daily average range of $1.39. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for HRTX. Prices continued to consolidate within a tight trading range between 11.10 and 12.34 where it has been caught now for the last three trading days.
Two candlestick patterns are matching today's price action, the Bullish Short Candle and the White Candle which are both known as bullish patterns. The last time a White Candle showed up on March 19th, HRTX actually lost -5.40% on the following trading day.
Buyers managed to take out the key technical resistance level at 11.79 (now S1), which is likely to act as support going forward.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Selling could accelerate should prices move below the close-by swing low at 11.10 where further sell stops might get activated. With prices trading close to this year's low at 9.60, downside momentum could speed up should Heron Therapeutics break out to new lows for the year.
Among the three market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bullish Short Candle" stand out. Its common bullish interpretation has been confirmed for Heron Therapeutics. Out of 46 times, HRTX closed higher 50.00% of the time on the next trading day after the market condition occurred.