MNKD still stuck within tight trading range
MannKind Corporation (MNKD) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team
MNKD finished Thursday at 1.10 gaining $0.03 (2.8%) on low volume, strongly underperforming the S&P 500 (6.24%). Closing above Wednesday's high at 1.09, MannKind confirmed its breakout through the previous session high after trading up to $0.01 above it intraday.
Daily Candlestick Chart (MNKD as at Mar 26, 2020):
Thursday's trading range has been $0.06 (5.66%), that's far below the last trading month's daily average range of $0.11. 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 continued to consolidate within a tight trading range between 0.95 and 1.11 where it has been caught now for the whole last trading week.
Three candlestick patterns are matching today's price action, the Bullish Short Candle and the White Candle which are both known as bullish patterns and one bearish pattern, the Last Engulfing Top Pattern. The last time a Last Engulfing Top Pattern showed up on January 16th, MNKD lost -3.82% on the following trading day.
Prices are trading close to the key technical resistance level at 1.11 (R1). After having been unable to move above 1.09 in the prior session, the market ran into sellers again around the same price level today, failing to move higher than 1.10.
Though the share is experiencing a short-term uptrend, this could just be a correction, as both the medium and long-term trends are still bearish.
Buying might speed up should prices move above the close-by swing high at 1.11 where further buy stops could get triggered.
Among the nine market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bullish Short Candle" stand out. Although it is usually interpreted as bullish, it has actually shown to be bearish for MannKind. Out of 59 times, MNKD closed lower 54.24% 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 nine trading days, showing a win rate of 52.54% with an average market move of -0.43%.