PBYI rockets, gaining $1.24 (13.07%) within a single day on high volume
Puma Biotechnology Inc (PBYI) Technical Analysis Report for Dec 02, 2019 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, PBYI finished Monday at 10.73 surging $1.24 (13.07%) on high volume, strongly outperforming the S&P 500 (-0.86%). This is the biggest single-day gain in over three weeks. Today's close at 10.73 marks the highest recorded closing price since September 30th. The bulls were in full control today, moving the market higher throughout the whole session. Closing above Friday's high at 9.71, the market confirmed its breakout through the previous session high after trading up to $1.19 above it intraday.
Daily Candlestick Chart (PBYI as at Dec 02, 2019):
Monday's trading range has been $1.21 (12.49%), that's far above the last trading month's daily average range of $0.69. Weekly volatility is also higher, being slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for PBYI.
One bullish candlestick pattern matches today's price action, the White Candle. The last time a White Candle showed up on November 29th, PBYI gained 13.07% on the following trading day.
The share managed to close back above the 100-day moving average at 9.48 for the first time since November 25th. Prices are trading close to the key technical resistance level at 11.16 (R1).
Crossing above the upper Bollinger Band for the first time since November 13th, prices have shown unusually strong upward momentum in the short-term. This might either indicate a potential buying climax after which prices could head back down towards the mean of the Bollinger Bands at 8.55 or signal the beginning of a strong momentum breakout leading to even higher prices.
While Puma Biotechnology is experiencing a short-term uptrend, this might just be a correction, as both the medium and long-term trends are still bearish.
Trading close to October's high at 11.06 we could see further upside momentum if potential buy stops at the level get triggered.
Among the 14 market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bullish Break through SMA 100" stand out. Although it is usually interpreted as bullish, it has actually shown to be bearish for Puma Biotechnology. Out of 23 times, PBYI closed lower 60.87% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the short side has been after three trading days, showing a win rate of 69.57% with an average market move of -0.26%.