MNKD plummets -4.88% closing $0.08 lower
MannKind Corporation (MNKD) Technical Analysis Report for Jul 31, 2020 | by Techniquant Editorial Team
MNKD finished the month -10.86% lower at 1.56 after tanking $0.08 (-4.88%) today, significantly underperforming the S&P 500 (0.77%). This is the biggest single-day loss in over two weeks. Today's close at 1.56 marks the lowest recorded closing price since June 12th. The bears were in full control today, moving the market lower throughout the whole session. Closing below Thursday's low at 1.58, MannKind confirmed its breakout through the prior session low after trading up to $0.02 below it intraday.
Daily Candlestick Chart (MNKD as at Jul 31, 2020):
Friday's trading range has been $0.10 (6.06%), that's slightly above the last trading month's daily average range of $0.09. 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 strongly lower than usual for MNKD.
In a volatile session, prices traded above the previous day's high as well as below the prior day's low, forming a bearish Outside Bar. Additionally, two candlestick patterns are matching today's price action, the Bearish Closing Marubozu and the Black Candle which are both known as bearish patterns.
Prices broke below the key technical support level at 1.57 (now R1), which is likely to act as resistance going forward. The last time this happened on July 13th, MNKD lost -4.85% on the following trading day.
While the market is currently in a short-term downtrend, this might just be a correction, as both the medium and long-term trends are still bullish.
As prices are trading close to July's low at 1.55, downside momentum could speed up should the stock mark new lows for the month.
Among the 10 market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Strong Down Move" stand out. Its common bearish interpretation has been confirmed for MannKind. Out of 178 times, MNKD closed lower 55.06% 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 55.06% with an average market move of -1.42%.