NKTR closes higher for the 3rd day in a row
Nektar Therapeutics (NKTR) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, NKTR ended Thursday at 17.51 gaining $0.58 (3.43%) on low volume, significantly underperforming the S&P 500 (6.24%). Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range in a lackluster session.
Daily Candlestick Chart (NKTR as at Mar 26, 2020):
Thursday's trading range has been $0.95 (5.61%), that's far below the last trading month's daily average range of $1.74. 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 NKTR. Prices continued to consolidate within a tight trading range between 15.78 and 17.80 where it has been caught now for the whole last trading week.
Two candlestick patterns are matching today's price action, the Bullish Short Candle and the White Candle which are both known as bullish patterns. The last time a Bullish Short Candle showed up on October 25, 2019, NKTR gained 6.12% on the following trading day.
Prices are trading close to the key technical support level at 16.49 (S1). After spiking up to 17.80 during the day, Nektar Therapeutics found resistance at the 20-day moving average at 17.65. After having been unable to move above 17.65 in the previous session, the market ran into sellers again around the same price level today, failing to move higher than 17.80.
The stock shows strength in the short-term supported by its long-term uptrend with only the medium-term trend being bearish.
Buying could speed up should prices move above the nearby swing high at 18.94 where further buy stops might get activated.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "3 Consecutive Higher Closes" stand out. Its common bullish interpretation has been confirmed for Nektar Therapeutics. Out of 137 times, NKTR closed higher 59.85% 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 48.91% with an average market move of 0.76%.