NKTR unable to break through key resistance level
Nektar Therapeutics (NKTR) Technical Analysis Report for Aug 05, 2020 | by Techniquant Editorial Team
Moving lower for the 4th day in a row, NKTR ended Wednesday at 21.75 edging lower $0.17 (-0.78%), strongly underperforming the S&P 500 (0.64%). Today's close at 21.75 marks the lowest recorded closing price since June 17th. Trading up to $0.27 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 in a lackluster session.
Daily Candlestick Chart (NKTR as at Aug 05, 2020):
Wednesday's trading range has been $0.64 (2.95%), that's below the last trading month's daily average range of $0.82. 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 higher than usual for NKTR.
Two candlestick patterns are matching today's price action, the Bullish High-Wave Candle and the Bullish Spinning Top which are both known as bullish patterns.
Unable to break through the key technical resistance level at 21.88 (R1), Nektar Therapeutics closed below it after spiking up to 22.07 earlier during the day. The failure to close above the resistance might increase that levels importance going forward. When prices bounced off a significant resistance level the last time on July 30th, NKTR lost -4.77% on the following trading day. After having been unable to move above 22.17 in the previous session, the share ran into sellers again around the same price level today, failing to move higher than 22.07.
Though still in a long-term uptrend, the short and medium-term trends both turned bearish already.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "4 Consecutive Lower Closes" stand out. Its common bearish interpretation has been confirmed for Nektar Therapeutics. Out of 73 times, NKTR closed lower 58.90% 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 10 trading days, showing a win rate of 57.53% with an average market move of -0.94%.