MNKD closes higher for the 3rd day in a row
MannKind Corporation (MNKD) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, MNKD finished Wednesday at 1.91 surging $0.14 (7.91%), notably outperforming the S&P 500 (-0.46%). This is the biggest single-day gain in over three weeks. Today's close at 1.91 marks the highest recorded closing price since June 23rd. Closing above Tuesday's high at 1.84, the stock confirmed its breakout through the previous session high after trading up to $0.11 above it intraday.
Daily Candlestick Chart (MNKD as at Sep 16, 2020):
Wednesday's trading range has been $0.17 (9.44%), that's above the last trading month's daily average range of $0.12. Weekly volatility is also higher, being slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for MNKD.
One bullish candlestick pattern matches today's price action, the White Candle. The last time a White Candle showed up on August 25th, MNKD actually lost -6.01% on the following trading day.
Buyers managed to take out the key technical resistance level at 1.85 (now S1), which is likely to act as support going forward.
Crossing above the upper Bollinger Band for the first time since August 19th, 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 1.72 or signal the beginning of a strong momentum breakout leading to even higher prices.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Among the eight 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 56.41% 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 53.85% with an average market move of 4.59%.