HTGM runs into sellers around 2.79 for the third day in a row
HTG Molecular Diagnostics Inc. (HTGM) Technical Analysis Report for Apr 16, 2019 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, HTGM ended Tuesday at 2.63 losing $0.09 (-3.31%), notably underperforming the S&P 500 (0.05%). Closing below Monday's low at 2.66, the stock confirmed its breakout through the previous session low after trading up to $0.07 below it intraday.
Daily Candlestick Chart (HTGM as at Apr 16, 2019):
Tuesday's trading range has been $0.20 (7.27%), that's slightly below the last trading month's daily average range of $0.21. Things look different on the weekly timeframe, where the market's trading range of the last week has been way above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for HTGM.
One bearish candlestick pattern matches today's price action, the Black Candle.
After trading as low as 2.59 during the day, HTG Molecular found support at the 100-day moving average at 2.61. Unable to break through the key technical resistance level at 2.75 (R1), the share closed below it after spiking up to 2.79 earlier during the day. The failure to close above the resistance might increase that levels importance going forward. The market ran into sellers again today around 2.79 for the third trading day in a row after having found sellers at 2.83 in the prior session and at 2.81 two days ago. The last time this happened on April 1st, HTGM actually gained 8.26% on the following trading day.
While still in a long-term downtrend, the short and medium-term trends both turned bullish already.
Buying could accelerate should prices move above the nearby swing high at 2.83 where further buy stops might get triggered. Selling could speed up should prices move below the close-by swing low at 2.49 where further sell stops might get activated. As prices are trading close to April's low at 2.39, downside momentum could accelerate should HTGM mark new lows for the month.
Among the 11 market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bounced off Technical Support S1" stand out. Though it is usually interpreted as bullish, it has actually shown to be bearish for HTG Molecular. Out of 139 times, HTGM closed lower 58.27% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the short side has been after three trading days, showing a win rate of 58.99% with an average market move of 0.99%.