TEVA slides to lowest close since November 3, 2017
Teva Pharmaceutical Industries Limited American Depositary Shares (TEVA) Technical Analysis Report for May 15, 2019 | by Techniquant Editorial Team
Moving lower for the 8th day in a row, TEVA ended Wednesday at 11.44 losing $0.66 (-5.45%) on high volume, significantly underperforming the S&P 500 (0.58%). Today's close at 11.44 marks the lowest recorded closing price since November 3, 2017.
Daily Candlestick Chart (TEVA as at May 15, 2019):
Wednesday's trading range has been $0.47 (4.04%), that's slightly below the last trading month's daily average range of $0.52. Things look different on the weekly timeframe, where the market's trading range of the last week has been way above the market's average weekly trading range. The longer-term, monthly volatility is currently notably higher than usual for TEVA.
One bullish candlestick pattern matches today's price action, the Bullish Hikkake Pattern. The last time a Bullish Hikkake Pattern showed up on May 2nd, TEVA gained 1.88% on the following trading day.
With another close below the lower Bollinger Band, prices are confirming their strong downward momentum in the short-term. A rally back into the Bollinger Band on the next trading day although could signal a potential change in momentum that might lead to a correction back up towards the center of the Bollinger Bands at 14.43.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "8 Consecutive Lower Closes" stand out. While it is usually interpreted as bearish, it has actually shown to be bullish for Teva Pharmaceutical. Out of 7 times, TEVA closed higher 57.14% 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 57.14% with an average market move of 4.26%.