NKTR breaks below key technical support level
Nektar Therapeutics (NKTR) Technical Analysis Report for May 28, 2020 | by Techniquant Editorial Team
NKTR finished Thursday at 22.21 losing $0.64 (-2.8%), notably underperforming the S&P 500 (-0.21%). Closing within the prior day's range, prices failed to decisively move beyond the previous day's trading range.
Daily Candlestick Chart (NKTR as at May 28, 2020):
Thursday's trading range has been $1.24 (5.39%), that's slightly above the last trading month's daily average range of $1.01. 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 slightly higher than usual for NKTR.
Notwithstanding a strong opening Nektar Therapeutics closed below the prior day's open and close, forming a bearish Engulfing Candle. Additionally, one bearish candlestick pattern matches today's price action, the Black Candle.
Prices broke below the key technical support level at 22.69 (now R1), which is likely to act as resistance going forward. The last time this happened on March 20th, NKTR lost -1.23% on the following trading day. After having been unable to move lower than 22.09 in the previous session, the market found buyers again around the same price level today at 22.11.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Selling might accelerate should prices move below the nearby swing low at 22.09 where further sell stops could get activated.
Among the eight market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bearish Engulfing Candle" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for Nektar Therapeutics. Out of 95 times, NKTR closed higher 56.84% 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 64.21% with an average market move of 3.37%.