PBYI falls to lowest close since November 6th
Puma Biotechnology Inc (PBYI) Technical Analysis Report for Dec 05, 2019 | by Techniquant Editorial Team
Moving lower for the 3rd day in a row, PBYI finished Thursday at 7.44 tanking $1.51 (-16.87%) on high volume, significantly underperforming the S&P 500 (0.15%). This is the biggest single-day loss in over a month. The last time we've seen such an unusually strong single-day loss on Tuesday, PBYI lost -4.28% on the following trading day. Today's close at 7.44 marks the lowest recorded closing price since November 6th. The bears were in full control today, moving the market lower throughout the whole session. Closing below Wednesday's low at 8.63, the share confirmed its breakout through the previous session low after trading up to $1.28 below it intraday.
Daily Candlestick Chart (PBYI as at Dec 05, 2019):
Thursday's trading range has been $1.64 (18.43%), that's far above the last trading month's daily average range of $0.86. Weekly volatility is also higher, being way above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for PBYI.
One bearish candlestick pattern matches today's price action, the Black Candle.
Prices are trading close to the key technical support level at 7.08 (S1). The market closed back below the 50-day moving average at 8.29 for the first time since November 20th.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
With prices trading close to this year's low at 6.26, downside momentum might accelerate should Puma Biotechnology break out to new lows for the year.
Among the 12 market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bearish Break through SMA 50" stand out. Its common bearish interpretation has been confirmed for Puma Biotechnology. Out of 54 times, PBYI closed lower 55.56% 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 10 trading days, showing a win rate of 62.96% with an average market move of -2.31%.