HZNP dominated by bears dragging the market lower throughout the day
Horizon Pharma plc (HZNP) Technical Analysis Report for Feb 14, 2020 | by Techniquant Editorial Team
HZNP finished the week 1.67% higher at 35.93 after gaining $0.09 (0.25%) today on low volume, slightly outperforming the S&P 500 (0.18%) ahead of tomorrow's Presidents' Day market holiday. The bears were in full control today, moving the market lower throughout the whole session. Closing within the prior day's range, prices missed to decisively move beyond the previous day's trading range in a lackluster session.
Daily Candlestick Chart (HZNP as at Feb 14, 2020):
Friday's trading range has been $0.03 (0.08%), that's far below the last trading month's daily average range of $0.94. 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 HZNP. Prices continued to consolidate within a tight trading range between 35.73 and 36.55 where it has been caught now for the last three trading days.
During the whole day, prices traded within the prior day's range, unable to trade above the previous day's high or below the prior day's low forming an Inside Bar. Additionally, three candlestick patterns are matching today's price action, the Homing Pigeon which is known as bullish pattern and two bearish patterns, the Bearish Short Candle and the Black Candle. The last time a Homing Pigeon showed up on January 29, 2019, HZNP gained 2.64% on the following trading day.
Prices are trading close to the key technical support level at 35.90 (S1).
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Selling could speed up should prices move below the nearby swing low at 35.73 where further sell stops might get activated.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Homing Pigeon" stand out. Though it is usually interpreted as bullish, it has actually shown to be bearish for Horizon Pharma. Out of 11 times, HZNP closed lower 72.73% of the time on the next trading day after the market condition occurred.