MYL stuck within tight trading range
Mylan N.V. (MYL) Technical Analysis Report for Nov 09, 2018 | by Techniquant Editorial Team
MYL finished the week 16.64% higher at 36.95 after losing $0.20 (-0.54%) today, but still significantly outperforming the Nasdaq 100 (-1.67%). Trading up to $0.49 lower after the open, Mylan N. V. managed to reverse during the session as bulls took control ending the day above its opening price. 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 (MYL as at Nov 09, 2018):
Friday's trading range has been $0.63 (1.71%), that's far below the last trading month's daily average range of $1.19. Things look different on the weekly timeframe, where the market's trading range of the last week has been way above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for MYL. Prices continued to consolidate within a tight trading range between 35.78 and 37.31 where it has been caught now for the last three trading days.
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, four candlestick patterns are matching today's price action, the Bearish Harami Cross Pattern, the Hanging Man and the Northern Doji which are known as bearish patterns and one neutral pattern, the Doji.
Prices are trading close to the key technical support level at 36.26 (S1). Prices are trading close to the key technical resistance level at 37.29 (R1).
Crossing below the upper Bollinger Band, prices have lost at least some of their upward momentum in the short-term and might now be heading back down towards the mean of the Bollinger Bands at 32.80. The last time this happened on August 9th, MYL actually gained 1.64% on the following trading day.
Although the share is experiencing a short-term uptrend, this could just be a correction, as both the medium and long-term trends are still bearish.
Buying might speed up should prices move above the close-by swing high at 37.31 where further buy stops could get activated. Selling might accelerate should prices move below the nearby swing low at 35.78 where further sell stops could get triggered. Further buying might move prices higher should the market test October's close-by high at 37.61.
Among the nine market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bearish Harami Cross Pattern" stand out. While it is usually interpreted as bearish, it has actually shown to be bullish for Mylan N. V.. Out of 3 times, MYL closed higher 66.67% 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 66.67% with an average market move of 0.70%.