TEVA closes lower for the 2nd day in a row
Teva Pharmaceutical Industries Limited American Depositary Shares (TEVA) Technical Analysis Report for Jul 02, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, TEVA finished Thursday at 11.35 losing $0.16 (-1.39%) on high volume, strongly underperforming the S&P 500 (0.45%) ahead of tomorrow's Independence Day OBS market holiday. Closing below Wednesday's low at 11.45, the stock confirmed its breakout through the previous session low after trading up to $0.19 below it intraday.
Daily Candlestick Chart (TEVA as at Jul 02, 2020):
Thursday's trading range has been $0.62 (5.27%), that's above the last trading month's daily average range of $0.49. Weekly volatility is also higher, being slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for TEVA.
One bearish candlestick pattern matches today's price action, the Black Candle.
The market shows weakness in the short-term (in accordance with its long-term downtrend) with only the medium-term trend still being bullish.
Further selling might move prices lower should the market test June's close-by low at 10.88.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Close near low of period" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for Teva Pharmaceutical. Out of 571 times, TEVA closed higher 52.54% 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 50.96% with an average market move of 0.39%.