MNKD closes below its opening price unable to hold early session gains
MannKind Corporation (MNKD) Technical Analysis Report for Feb 14, 2020 | by Techniquant Editorial Team
MNKD finished the week 0.69% higher at 1.46 after losing $0.01 (-0.68%) today, underperforming the S&P 500 (0.18%) ahead of tomorrow's Presidents' Day market holiday. Trading $0.06 higher after the open, the stock was unable to hold its gains as the bears took control ending the day below its opening price. The last time this happened on January 27th, MNKD lost -3.70% on the following trading day. Closing within the prior day's range, prices failed to decisively move beyond the previous day's trading range.
Daily Candlestick Chart (MNKD as at Feb 14, 2020):
Friday's trading range has been $0.10 (6.71%), that's slightly below the last trading month's daily average range of $0.12. Weekly volatility is also lower, being way below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for MNKD.
Prices are trading close to the key technical support level at 1.43 (S1). After spiking up to 1.55 during the day, the share found resistance at the 20-day moving average at 1.54.
While MannKind is currently in a short-term downtrend, this could just be a correction, as both the medium and long-term trends are still bullish.
Selling might accelerate should prices move below the close-by swing low at 1.43 where further sell stops could get activated.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Close to Swing Low" stand out. Though it is usually interpreted as neutral, it has actually shown to be bearish for MannKind. Out of 921 times, MNKD closed lower 49.51% 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 10 trading days, showing a win rate of 54.51% with an average market move of 0.36%.