MYL closes above its opening price after recovering from early selling pressure
Mylan N.V. (MYL) Technical Analysis Report for Jun 30, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, MYL ended the month -5.8% lower at 16.08 after gaining $0.09 (0.56%) today, strongly underperforming the Nasdaq 100 (1.96%). Trading up to $0.34 lower after the open, the stock 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 missed to decisively move beyond the previous day's trading range in a lackluster session.
Daily Candlestick Chart (MYL as at Jun 30, 2020):
Tuesday's trading range has been $0.53 (3.32%), that's below the last trading month's daily average range of $0.77. Weekly volatility is also lower, being way below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for MYL. Prices continued to consolidate within a tight trading range between 15.55 and 16.41 where it has been caught now for the whole last trading week.
Even with a weak opening the market managed to close above the prior day's open and close, forming a bullish Engulfing Candle. Additionally, two candlestick patterns are matching today's price action, the Bullish Hikkake Pattern and the Takuri Line which are both known as bullish patterns. The last time a Bullish Hikkake Pattern showed up on June 10th, MYL actually lost -5.89% on the following trading day.
After trading down to 15.63 earlier during the day, Mylan N. V. bounced off the key technical support level at 15.74 (S1). The failure to close below the support might increase that levels significance as support going forward. Prices are trading close to the key technical resistance level at 16.49 (R1). After having been unable to move above 16.20 in the previous session, the share ran into sellers again around the same price level today, missing to move higher than 16.16.
MYL shows weakness in the short-term (in accordance with its long-term downtrend) with only the medium-term trend still being bullish.
Buying could accelerate should prices move above the close-by swing high at 16.41 where further buy stops might get activated. Selling could speed up should prices move below the nearby swing low at 15.55 where further sell stops might get triggered. Further selling could move prices lower should the market test May's close-by low at 14.80.
Among the 11 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 Mylan N. V.. Out of 425 times, MYL closed higher 60.47% 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 57.65% with an average market move of 0.84%.