ICPT tumbles, losing $11.18 (-12.19%) within a single day on high volume
Intercept Pharmaceuticals Inc. (ICPT) Technical Analysis Report for May 22, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, ICPT finished the week -4.85% lower at 80.51 after tanking $11.18 (-12.19%) today on high volume, significantly underperforming the S&P 500 (0.24%) ahead of tomorrow's Memorial Day market holiday. This is the biggest single-day loss in over two months. Trading up to $3.70 lower after the open, Intercept managed to reverse during the session as bulls took control ending the day above its opening price. The last time this happened on May 5th, ICPT gained 9.99% on the following trading day. Ending the day with an indecisive close, neither buyers nor sellers were able to gain control during the session.
Daily Candlestick Chart (ICPT as at May 22, 2020):
Friday's trading range has been $5.31 (6.64%), that's slightly above the last trading month's daily average range of $4.71. Weekly volatility is also higher, being above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for ICPT.
Two candlestick patterns are matching today's price action, the Bullish Spinning Top which is known as bullish pattern and one bearish pattern, the Hanging Man.
The share closed below the 200-day moving average at 83.24 for the first time since May 5th.
The stock shows weakness in the short-term (in accordance with its long-term downtrend) with only the medium-term trend still being bullish.
As prices are trading close to May's low at 74.85, downside momentum could speed up should the market mark new lows for the month.
Among the 11 market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Hanging Man" stand out. Its common bearish interpretation has been confirmed for Intercept. Out of 57 times, ICPT closed lower 52.63% 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 eight trading days, showing a win rate of 61.40% with an average market move of -1.68%.