MNKD rallies, gaining $0.16 (11.94%) within a single day on high volume
MannKind Corporation (MNKD) Technical Analysis Report for May 22, 2020 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, MNKD ended the week 22.95% higher at 1.50 after surging $0.16 (11.94%) today on high volume, significantly outperforming the S&P 500 (0.24%) ahead of tomorrow's Memorial Day market holiday. This is the biggest single-day gain in over two months. Today's close at 1.50 marks the highest recorded closing price since February 24th. Closing above Thursday's high at 1.38, the stock confirmed its breakout through the previous session high after trading up to $0.16 above it intraday.
Daily Candlestick Chart (MNKD as at May 22, 2020):
Friday's trading range has been $0.21 (15.44%), that's far above the last trading month's daily average range of $0.10. Weekly volatility is also higher, being way above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for MNKD.
One bullish candlestick pattern matches today's price action, the White Candle.
Buyers managed to take out the key technical resistance level at 1.41 (now S1), which is likely to act as support going forward. Prices are trading close to the key technical resistance level at 1.55 (R1).
Crossing above the upper Bollinger Band for the first time since April 15th, prices have shown unusually strong upward momentum in the short-term. This could either indicate a potential buying climax after which prices might head back down towards the mean of the Bollinger Bands at 1.31 or signal the beginning of a strong momentum breakout leading to even higher prices. The last time prices broke out above the upper Bollinger Band on April 13th, MNKD gained 8.62% on the following trading day.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Among the 10 market conditions that our pattern recognition engine identified today, the statistics for the Technical Indicators based market condition "Close crossed above the upper Bollinger Band" stand out. Its common bullish interpretation has been confirmed for MannKind. Out of 78 times, MNKD closed higher 58.97% 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 52.56% with an average market move of 4.62%.