NKTR closes above its opening price after recovering from early selling pressure
Nektar Therapeutics (NKTR) Technical Analysis Report for Jul 14, 2020 | by Techniquant Editorial Team
NKTR ended Tuesday at 23.59 edging higher $0.23 (0.98%), slightly underperforming the S&P 500 (1.34%). Trading up to $0.62 lower after the open, the share 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 failed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (NKTR as at Jul 14, 2020):
Tuesday's trading range has been $0.89 (3.81%), that's slightly below 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 slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for NKTR.
After moving lower in the previous session, the stock managed to close higher but below the prior day's open, forming a bullish Harami Candle. The last time this candlestick pattern showed up on February 19th, NKTR gained 3.63% on the following trading day. Additionally, one bullish candlestick pattern matches today's price action, the Hammer.
After trading as low as 22.74 during the day, the market found support at the 20-day moving average at 23.09.
While still in a long-term downtrend, the short and medium-term trends both turned bullish already.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bullish Bounce off SMA 20" stand out. Its common bullish interpretation has been confirmed for Nektar Therapeutics. Out of 61 times, NKTR closed higher 54.10% 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 54.10% with an average market move of 2.58%.