NVCR climbs to highest close since January 22nd
NovoCure Limited (NVCR) Technical Analysis Report for Feb 14, 2020 | by Techniquant Editorial Team
Moving higher for the 5th day in a row, NVCR ended the week 8.57% higher at 93.16 after edging higher $0.24 (0.26%) today, slightly outperforming the S&P 500 (0.18%) ahead of tomorrow's Presidents' Day market holiday. Today's close at 93.16 marks the highest recorded closing price since January 22nd. Closing within the prior day's range, prices missed to decisively move beyond the previous day's trading range in a lackluster session.
Daily Candlestick Chart (NVCR as at Feb 14, 2020):
Friday's trading range has been $1.73 (1.85%), that's far below the last trading month's daily average range of $3.37. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently lower than usual for NVCR.
One bearish candlestick pattern matches today's price action, the Bearish Spinning Top.
After having been unable to move above 93.87 in the prior session, the market ran into sellers again around the same price level today, failing to move higher than 93.98. The last time this happened on Monday, NVCR actually gained 3.32% on the following trading day.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
With prices trading close to this year's high at 98.84, upside momentum could speed up should the stock be able to break out to new highs for the year.
Among the three market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "5 Consecutive Higher Closes" stand out. Its common bullish interpretation has been confirmed for NovoCure. Out of 15 times, NVCR closed higher 73.33% 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 five trading days, showing a win rate of 53.33% with an average market move of 0.07%.