JAZZ declines to lowest close since November 20, 2019
Jazz Pharmaceuticals plc (JAZZ) Technical Analysis Report for Feb 14, 2020 | by Techniquant Editorial Team
Moving lower for the 3rd day in a row, JAZZ finished the week -1.19% lower at 140.85 after losing $1.08 (-0.76%) today on low volume, underperforming the S&P 500 (0.18%) ahead of tomorrow's Presidents' Day market holiday. Today's close at 140.85 marks the lowest recorded closing price since November 20, 2019. The bears were in full control today, moving the market lower throughout the whole session. Closing below Thursday's low at 141.34, the share confirmed its breakout through the previous session low after trading up to $1.14 below it intraday.
Daily Candlestick Chart (JAZZ as at Feb 14, 2020):
Friday's trading range has been $2.17 (1.52%), that's below the last trading month's daily average range of $2.83. Weekly volatility is also lower, being way below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for JAZZ.
Two candlestick patterns are matching today's price action, the Last Engulfing Bottom Pattern which is known as bullish pattern and one bearish pattern, the Black Candle. The last time a Black Candle showed up on Wednesday, JAZZ lost -0.78% on the following trading day.
After trading down to 140.20 earlier during the day, the market bounced off the key technical support level at 140.45 (S1). The failure to close below the support might increase that levels importance as support going forward.
Although still in a long-term uptrend, the short and medium-term trends both turned bearish already.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "3 Consecutive Lower Closes" stand out. While it is usually interpreted as bearish, it has actually shown to be bullish for Jazz Pharmaceuticals. Out of 147 times, JAZZ closed higher 56.46% 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 54.42% with an average market move of 1.72%.