SGEN finds support at 50-day moving average
Seattle Genetics Inc. (SGEN) Technical Analysis Report for Jul 31, 2020 | by Techniquant Editorial Team
SGEN ended the month -2.15% lower at 166.27 after losing $4.87 (-2.85%) today on high volume, notably underperforming the S&P 500 (0.77%) following Thursday's earnings report. Today's close at 166.27 marks the lowest recorded closing price since June 29th. Closing below Thursday's low at 167.22, Seattle Genetics confirmed its breakout through the previous session low after trading up to $9.56 below it intraday.
Daily Candlestick Chart (SGEN as at Jul 31, 2020):
SGEN reported earnings of $-0.54 per share after Thursday's market close. With analysts having expected an EPS of $-0.58, Seattle Genetics Inc. topped market expectations by 6.9%. The company's last earnings report was released on April 30, 2020, when Seattle Genetics Inc. reported earnings of $-0.64 per share topping market expectations by 22.0%.
Friday's trading range has been $12.35 (7.27%), that's far above the last trading month's daily average range of $6.48. 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 SGEN.
One bullish candlestick pattern matches today's price action, the Hammer.
After trading as low as 157.66 during the day, the share found support at the 50-day moving average at 165.04. The last time this happened on April 1st, SGEN gained 6.68% on the following trading day.
Though the stock is currently in a short-term downtrend, this could just be a correction, as both the medium and long-term trends are still bullish.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the Stock Earning Report based market condition "Trading Day post strong Earnings Report" stand out. While it is usually interpreted as neutral, it has actually shown to be bearish for Seattle Genetics. Out of 21 times, SGEN closed lower 61.90% of the time on the next trading day after the market condition occurred.