NVCR pops to highest close since April 29th
NovoCure Limited (NVCR) Technical Analysis Report for May 22, 2020 | by Techniquant Editorial Team
NVCR ended the week 2.04% higher at 65.98 after gaining $2.79 (4.42%) today, strongly outperforming the S&P 500 (0.24%) ahead of tomorrow's Memorial Day market holiday. Today's close at 65.98 marks the highest recorded closing price since April 29th. Trading up to $1.10 lower after the open, the share managed to reverse during the session as bulls took control ending the day above its opening price. Ending with a strong close near the high of the day sets a bullish note for the next session.
Daily Candlestick Chart (NVCR as at May 22, 2020):
Friday's trading range has been $2.85 (4.4%), that's slightly below the last trading month's daily average range of $3.56. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for NVCR.
NovoCure managed to close above the 20-day moving average at 64.94 for the first time since April 29th. When this moving average was crossed above the last time on April 6th, NVCR actually lost -6.60% on the following trading day. After spiking up to 66.48 during the day, the market found resistance at the 50-day moving average at 66.04.
While the stock is experiencing a short-term uptrend, this could just be a correction, as both the medium and long-term trends are still bearish.
Buying might speed up should prices move above the nearby swing high at 68.46 where further buy stops could get activated.
Among the eight market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bounced off Technical Support S1" stand out. Its common bullish interpretation has been confirmed for NovoCure. Out of 181 times, NVCR closed higher 56.35% 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 61.88% with an average market move of 3.06%.