MRTX closes within prior day's range after lackluster session
Mirati Therapeutics Inc. (MRTX) Technical Analysis Report for Jun 30, 2020 | by Techniquant Editorial Team
MRTX finished the month 15.1% higher at 114.17 after edging lower $0.53 (-0.46%) today, significantly underperforming the S&P 500 (1.54%). Closing within the prior day's range, prices failed to decisively move beyond the previous day's trading range in a lackluster session.
Daily Candlestick Chart (MRTX as at Jun 30, 2020):
Tuesday's trading range has been $4.08 (3.58%), that's below the last trading month's daily average range of $5.59. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently higher than usual for MRTX.
During the whole day, prices traded within the prior day's range, unable to trade above the previous day's high or below the prior day's low forming an Inside Bar. Additionally, one neutral candlestick pattern matches today's price action, the Doji. The last time a Doji showed up on April 15th, MRTX gained 5.04% on the following trading day.
After trading down to 112.77 earlier during the day, the stock bounced off the key technical support level at 113.57 (S1). The failure to close below the support could increase that levels significance as support going forward.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Selling might accelerate should prices move below the nearby swing low at 111.38 where further sell stops could get activated.
Among the three market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bounced off Technical Support S1" stand out. Its common bullish interpretation has been confirmed for Mirati Therapeutics. Out of 330 times, MRTX closed higher 51.82% 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 56.67% with an average market move of 2.99%.