MYL enters Death Cross for the first time since January 29th
Mylan N.V. (MYL) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team
MYL ended Thursday at 15.54 gaining $0.61 (4.09%) on low volume, significantly underperforming the Nasdaq 100 (5.72%). Closing above Wednesday's high at 15.44, the market confirmed its breakout through the prior session high after trading up to $0.76 above it intraday.
Daily Candlestick Chart (MYL as at Mar 26, 2020):
Thursday's trading range has been $1.32 (8.87%), that's slightly below the last trading month's daily average range of $1.54. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently notably lower than usual for MYL.
Regardless of a weak opening the stock managed to close above the previous day's open and close, forming a bullish Engulfing Candle.
The share managed to close above the 20-day moving average at 15.39 for the first time since February 12th. When this moving average was crossed above the last time on February 3rd, MYL gained 2.96% on the following trading day. Prices are trading close to the key technical resistance level at 16.78 (R1).
While Mylan N. V. is experiencing a short-term uptrend, this could just be a correction, as both the medium and long-term trends are still bearish. With its 50-day moving average crossing below its 200-day moving average, MYL has entered a so-called "Death Cross" for the first time since January 29th. Showing increasing downward momentum in the short and medium-term the "Death Cross" is known to indicate a potential bear market on the horizon.
Buying might accelerate should prices move above the close-by swing high at 16.86 where further buy stops could get triggered.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the Technical Indicators based market condition "Death Cross" stand out. Its common bearish interpretation has been confirmed for Mylan N. V.. Out of 6 times, MYL closed lower 83.33% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the short side has been after 10 trading days, showing a win rate of 50.00% with an average market move of -0.83%.