PBYI closes within prior day's range after lackluster session
Puma Biotechnology Inc (PBYI) Technical Analysis Report for Aug 04, 2020 | by Techniquant Editorial Team
PBYI finished Tuesday at 10.78 losing $0.11 (-1.01%), notably underperforming the S&P 500 (0.36%). 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 (PBYI as at Aug 04, 2020):
Tuesday's trading range has been $0.33 (3.03%), that's below the last trading month's daily average range of $0.50. 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 PBYI.
After moving higher in the prior session, Puma Biotechnology closed lower but above the previous day's open today, forming a bearish Harami Candle. The last time this candlestick pattern showed up on July 31st, PBYI actually gained 5.63% on the following trading day.
Prices are trading close to the key technical resistance level at 11.12 (R1).
Crossing below the upper Bollinger Band, prices have lost at least some of their upward momentum in the short-term and could now be heading back down towards the mean of the Bollinger Bands at 10.19.
The stock shows strength in the short-term supported by its long-term uptrend with only the medium-term trend being bearish.
Further buying might move prices higher should the market test July's nearby high at 11.12.
Among the two market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bearish Harami Candle" stand out. While it is usually interpreted as bearish, it has actually shown to be bullish for Puma Biotechnology. Out of 28 times, PBYI closed higher 60.71% 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 60.71% with an average market move of 1.75%.