UPWK closes lower for the 2nd day in a row
Upwork Inc. (UPWK) Technical Analysis Report for Apr 16, 2019 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, UPWK finished Tuesday at 19.02 losing $0.44 (-2.26%), strongly underperforming the S&P 500 (0.05%). Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (UPWK as at Apr 16, 2019):
Tuesday's trading range has been $0.75 (3.85%), that's slightly below the last trading month's daily average range of $0.78. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently just the same than usual for UPWK.
One bearish candlestick pattern matches today's price action, the Black Candle.
Prices broke below the key technical support level at 19.06 (now R1), which is likely to act as resistance going forward. The last time this happened on April 1st, UPWK actually gained 2.80% on the following trading day.
While Upwork is currently in a short-term downtrend, this might just be a correction, as both the medium and long-term trends are still bullish.
With prices trading close to this year's low at 17.51, downside momentum could speed up should the share break out to new lows for the year. As prices are trading close to April's high at 20.25, upside momentum might accelerate should the stock mark new highs for the month. As prices are trading close to April's low at 17.72, downside momentum could speed up should the market mark new lows for the month.
Among the four market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Price broke through Technical Support S1" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for Upwork. Out of 5 times, UPWK closed higher 80.00% 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 60.00% with an average market move of 2.37%.