PTCT still stuck within tight trading range
PTC Therapeutics Inc. (PTCT) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team
PTCT finished Thursday at 43.42 gaining $1.70 (4.07%) on low volume, strongly underperforming the S&P 500 (6.24%). Trading up to $1.67 lower after the open, the market managed to reverse during the session as bulls took control ending the day above its opening price. The last time this happened on Monday, PTCT gained 4.27% on the following trading day. Closing within the prior day's range, prices missed to decisively move beyond the previous day's trading range.
Daily Candlestick Chart (PTCT as at Mar 26, 2020):
Thursday's trading range has been $4.10 (9.75%), that's slightly below the last trading month's daily average range of $4.36. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently significantly higher than usual for PTCT. Prices continued to consolidate within a tight trading range between 37.21 and 44.47 where it has been caught now for the whole last trading week.
Buyers managed to take out the key technical resistance level at 42.12 (now S1), which is likely to act as support going forward. After having been unable to move lower than 39.95 in the prior session, PTC Therapeutics found buyers again around the same price level today at 40.37.
The share shows strength in the short-term supported by its long-term uptrend with only the medium-term trend being bearish.
Among the four market conditions that our pattern recognition engine identified today, the statistics for the Technical Indicators based market condition "RSI(2) above 80" stand out. Although it is usually interpreted as bearish, it has actually shown to be bullish for PTC Therapeutics. Out of 192 times, PTCT closed higher 56.25% 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 58.85% with an average market move of 3.06%.