MYL breaks below key technical support level
Mylan N.V. (MYL) Technical Analysis Report for Jul 31, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, MYL finished the month 0.19% higher at 16.11 after losing $0.22 (-1.35%) today on low volume, notably underperforming the Nasdaq 100 (1.78%).
Daily Candlestick Chart (MYL as at Jul 31, 2020):
Friday's trading range has been $0.48 (2.94%), that's slightly below the last trading month's daily average range of $0.51. 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 slightly lower than usual for MYL.
One bullish candlestick pattern matches today's price action, the Bullish Hikkake Pattern.
After trading as low as 15.88 during the day, Mylan N. V. found support at the 100-day moving average at 16.04. The last time this happened on Wednesday, MYL actually lost -3.94% on the following trading day. Prices broke below the key technical support level at 16.27 (now R1), which is likely to act as resistance going forward.
While still in a long-term uptrend, the short and medium-term trends both turned bearish already.
Selling could accelerate should prices move below the close-by swing low at 15.87 where further sell stops might get triggered. Further selling could move prices lower should the market test June's nearby low at 15.29.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "2 Consecutive Lower Closes" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for Mylan N. V.. Out of 318 times, MYL closed higher 56.60% 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 54.09% with an average market move of 0.23%.