NVRO closes higher for the 3rd day in a row
Nevro Corp. (NVRO) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, NVRO finished Thursday at 95.33 gaining $4.03 (4.41%), significantly underperforming the S&P 500 (6.24%). Trading up to $3.76 lower after the open, the stock managed to reverse during the session as bulls took control ending the day above its opening price. Closing within the prior day's range, prices failed to decisively move beyond the previous day's trading range in a lackluster session.
Daily Candlestick Chart (NVRO as at Mar 26, 2020):
Thursday's trading range has been $6.89 (7.4%), that's far below the last trading month's daily average range of $10.59. 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 notably higher than usual for NVRO.
Prices are trading close to the key technical support level at 88.45 (S1). After having been unable to move above 96.11 in the prior session, the share ran into sellers again around the same price level today, failing to move higher than 96.28. The last time this happened on March 17th, NVRO lost -9.08% on the following trading day.
While still in a long-term uptrend, the short and medium-term trends both turned bearish already.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "High close to previous High" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for Nevro. Out of 352 times, NVRO closed higher 53.13% 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 54.55% with an average market move of 1.70%.