OPK finds support at 50-day moving average
Opko Health Inc. (OPK) Technical Analysis Report for Feb 14, 2020 | by Techniquant Editorial Team
OPK ended the week -1.88% lower at 1.57 after flat today on low volume, slightly underperforming the S&P 500 (0.18%) ahead of tomorrow's Presidents' Day market holiday. Ending the day with an indecisive close, neither buyers nor sellers were able to gain control during the session.
Daily Candlestick Chart (OPK as at Feb 14, 2020):
Friday's trading range has been $0.05 (3.16%), that's below the last trading month's daily average range of $0.08. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for OPK.
Two candlestick patterns are matching today's price action, the Hammer and the Homing Pigeon which are both known as bullish patterns.
After trading as low as 1.54 during the day, the market found support at the 50-day moving average at 1.55. The last time this happened on January 21st, OPK gained 9.49% on the following trading day.
Although the share is experiencing a short-term uptrend, this could just be a correction, as both the medium and long-term trends are still bearish.
Selling might accelerate should prices move below the nearby swing low at 1.51 where further sell stops could get activated. With prices trading close to this year's low at 1.42, downside momentum might speed up should the stock break out to new lows for the year.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bullish Bounce off SMA 50" stand out. Its common bullish interpretation has been confirmed for Opko Health. Out of 39 times, OPK closed higher 58.97% of the time on the next trading day after the market condition occurred.