NKTR closes within prior day's range
Nektar Therapeutics (NKTR) Technical Analysis Report for Feb 14, 2020 | by Techniquant Editorial Team
NKTR ended the week 2.3% higher at 23.13 after gaining $0.28 (1.23%) today, strongly outperforming the S&P 500 (0.18%) ahead of tomorrow's Presidents' Day market holiday. Trading up to $0.50 lower after the open, the market managed to reverse during the session as bulls took control ending the day above its opening price. Closing within the previous day's range, prices missed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (NKTR as at Feb 14, 2020):
Friday's trading range has been $1.13 (4.92%), that's above the last trading month's daily average range of $0.93. Things look different on the weekly timeframe, where the market's trading range of the last week has been below the market's average weekly trading range. The longer-term, monthly volatility is currently lower than usual for NKTR.
Three candlestick patterns are matching today's price action, the Bullish High-Wave Candle, the Bullish Hikkake Pattern and the Bullish Spinning Top which are known as bullish patterns.
Unable to break through the key technical resistance level at 23.35 (R1), the share closed below it after spiking up to 23.60 earlier during the day. The failure to close above the resistance could increase that levels significance going forward. After having been unable to move above 23.62 in the previous session, Nektar Therapeutics ran into sellers again around the same price level today, missing to move higher than 23.60. The last time this happened on Tuesday, NKTR actually gained 4.82% on the following trading day.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Buying might speed up should prices move above the nearby swing high at 24.00 where further buy stops could get activated.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bullish Hikkake Pattern" stand out. Though it is usually interpreted as bullish, it has actually shown to be bearish for Nektar Therapeutics. Out of 105 times, NKTR closed lower 52.38% 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 nine trading days, showing a win rate of 55.24% with an average market move of -0.59%.