MYL falls to lowest close since September 29, 2017
Mylan N.V. (MYL) Technical Analysis Report for Oct 12, 2018
Moving lower for the 4th day in a row, MYL finished the week -9.01% lower at 32.11 after losing $0.49 (-1.5%) today, significantly underperforming the Nasdaq 100 (2.77%). Today's close at 32.11 marks the lowest recorded closing price since September 29, 2017. Closing below Thursday's low at 32.26, the share confirmed its breakout through the prior session low after trading up to $0.72 below it intraday.
Daily Candlestick Chart (MYL as at Oct 12, 2018):
Friday's trading range has been $1.69 (5.11%), that's far above the last trading month's daily average range of $1.10. Weekly volatility is also higher, being way above the market's average weekly trading range. The longer-term, monthly volatility is currently notably higher than usual for MYL.
One bearish candlestick pattern matches today's price action, the Black Candle.
Unable to break through the key technical resistance level at 33.09 (R1), the market closed below it after spiking up to 33.23 earlier during the day. The failure to close above the resistance could increase that levels importance going forward. When prices bounced off a significant resistance level the last time on October 3rd, MYL lost -1.56% on the following trading day.
With another close below the lower Bollinger Band, prices are confirming their strong downward momentum in the short-term. A rally back into the Bollinger Band on the next trading day while might signal a potential change in momentum that could lead to a correction back up towards the center of the Bollinger Bands at 36.42.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "4 Consecutive Lower Closes" stand out. Although it is usually interpreted as bearish, it has actually shown to be bullish for Mylan N. V.. Out of 64 times, MYL closed higher 62.50% 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 59.38% with an average market move of 2.21%.