MYL finds buyers at key support level
Mylan N.V. (MYL) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team
Moving higher for the 4th day in a row, MYL finished Wednesday at 16.00 edging higher $0.05 (0.31%) on high volume, strongly outperforming the Nasdaq 100 (-1.67%). Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (MYL as at Sep 16, 2020):
Wednesday's trading range has been $0.82 (5.12%), that's far above the last trading month's daily average range of $0.56. Weekly volatility is also higher, being slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for MYL.
Three candlestick patterns are matching today's price action, the Hanging Man and the Northern Doji which are both known as bearish patterns and one neutral pattern, the Doji.
After trading down to 15.40 earlier during the day, the stock bounced off the key technical support level at 15.87 (S1). The failure to close below the support could increase that levels significance as support going forward. Prices are trading close to the key technical resistance level at 16.41 (R1). After having been unable to move above 16.23 in the previous session, the share ran into sellers again around the same price level today, missing to move higher than 16.22. The last time this happened on September 8th, MYL lost -2.49% on the following trading day.
Mylan N. V. shows strength in the short-term supported by its long-term uptrend with only the medium-term trend being bearish.
Buying might speed up should prices move above the nearby swing high at 16.23 where further buy stops could get triggered. As prices are trading close to September's high at 16.34, upside momentum might accelerate should the market mark new highs for the month.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Doji" stand out. Though it is usually interpreted as neutral, it has actually shown to be bullish for Mylan N. V.. Out of 129 times, MYL closed higher 55.04% 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 62.02% with an average market move of 1.14%.