OMCL breaks back above 50-day moving average
Omnicell Inc. (OMCL) Technical Analysis Report for Sep 13, 2019 | by Techniquant Editorial Team
OMCL ended the week 1.25% higher at 73.72 after gaining $0.93 (1.28%) today, notably outperforming the S&P 500 (-0.07%). 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 (OMCL as at Sep 13, 2019):
Friday's trading range has been $1.38 (1.88%), that's far below the last trading month's daily average range of $2.34. 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 OMCL.
During the whole day, prices traded within the prior day's range, unable to trade above the previous day's high or below the prior day's low forming an Inside Bar.
The stock managed to close back above the 50-day moving average at 72.61. When this moving average was crossed above the last time on Wednesday, OMCL actually lost -2.67% on the following trading day. Unable to break through the key technical resistance level at 73.80 (R1), the market closed below it after spiking up to 74.38 earlier during the day. The failure to close above the resistance might increase that levels significance going forward.
While Omnicell 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 accelerate should prices move above the nearby swing high at 75.66 where further buy stops could get activated. Further buying might move prices higher should the market test August's close-by high at 76.54.
Among the three market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bullish Break through SMA 50" stand out. Its common bullish interpretation has been confirmed for Omnicell. Out of 99 times, OMCL closed higher 51.52% 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 1.27%.