MRTX crashes -2.57% on low volume
Mirati Therapeutics Inc. (MRTX) Technical Analysis Report for Feb 14, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, MRTX ended the week -0.68% lower at 92.17 after tanking $2.43 (-2.57%) today on low volume, significantly underperforming the S&P 500 (0.18%) ahead of tomorrow's Presidents' Day market holiday. This is the biggest single-day loss in over two weeks. The bears were in full control today, moving the market lower throughout the whole session. Closing below Thursday's low at 94.02, the share confirmed its breakout through the previous session low after trading up to $2.62 below it intraday.
Daily Candlestick Chart (MRTX as at Feb 14, 2020):
Friday's trading range has been $3.13 (3.31%), that's below the last trading month's daily average range of $3.71. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently notably lower than usual for MRTX.
One bearish candlestick pattern matches today's price action, the Black Candle.
After trading as low as 91.40 during the day, the market found support at the 20-day moving average at 91.57. The last time this happened on January 2nd, MRTX actually lost -2.59% on the following trading day. The stock closed back below the 200-day moving average at 92.96 for the first time since February 5th.
Mirati Therapeutics shows strength in the short-term supported by its long-term uptrend with only the medium-term trend being bearish.
With prices trading close to this year's low at 83.26, downside momentum might accelerate should MRTX break out to new lows for the year. As prices are trading close to February's low at 87.07, downside momentum could speed up should the share mark new lows for the month.
Among the eight market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Strong Down Move" stand out. While it is usually interpreted as bearish, it has actually shown to be bullish for Mirati Therapeutics. Out of 126 times, MRTX closed higher 56.35% 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 61.11% with an average market move of 4.31%.