MEDP dominated by bears dragging the market lower throughout the day
Medpace Holdings Inc. (MEDP) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team
MEDP ended Wednesday at 116.66 losing $3.41 (-2.84%), strongly underperforming the S&P 500 (-0.46%). The bears were in full control today, moving the market lower throughout the whole session. Closing below Tuesday's low at 119.32, the stock confirmed its breakout through the previous session low after trading up to $3.13 below it intraday.
Daily Candlestick Chart (MEDP as at Sep 16, 2020):
Wednesday's trading range has been $4.54 (3.77%), that's slightly above the last trading month's daily average range of $4.12. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for MEDP.
One bearish candlestick pattern matches today's price action, the Black Candle.
The market closed back below the 50-day moving average at 118.12. When this moving average was crossed below the last time on September 11th, MEDP actually gained 2.65% on the following trading day.
Although Medpace Holdings is currently in a short-term downtrend, this might just be a correction, as both the medium and long-term trends are still bullish.
Selling could accelerate should prices move below the close-by swing low at 114.29 where further sell stops might get activated.
Among the eight market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Closed below last periods low" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for Medpace Holdings. Out of 175 times, MEDP closed higher 54.29% 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 70.86% with an average market move of 4.20%.