UPWK unable to break through key resistance level
Upwork Inc. (UPWK) Technical Analysis Report for Feb 14, 2020 | by Techniquant Editorial Team
UPWK finished the week 1.65% higher at 9.22 after losing $0.07 (-0.75%) today, underperforming the S&P 500 (0.18%) ahead of tomorrow's Presidents' Day market holiday. Trading $0.23 higher after the open, the market was unable to hold its gains as the bears took control ending the day below its opening price. The last time this happened on January 31st, UPWK lost -2.40% on the following trading day. Closing within the previous day's range, prices missed to decisively move beyond the prior day's trading range in a lackluster session.
Daily Candlestick Chart (UPWK as at Feb 14, 2020):
Friday's trading range has been $0.30 (3.24%), that's below the last trading month's daily average range of $0.36. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently just the same than usual for UPWK. Prices continued to consolidate within a tight trading range between 9.05 and 9.49 where it has been caught now for the last three trading days.
Two candlestick patterns are matching today's price action, the Bearish Hikkake Pattern and the Shooting Star which are both known as bearish patterns.
Unable to break through the key technical resistance level at 9.35 (R1), the share closed below it after spiking up to 9.49 earlier during the day. The failure to close above the resistance might increase that levels importance going forward. Upwork ran into sellers again today around 9.49 for the third trading day in a row after having found sellers at 9.44 in the previous session and at 9.46 two days ago.
While the stock is experiencing a short-term uptrend, this could just be a correction, as both the medium and long-term trends are still bearish.
Among the nine market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Shooting Star" stand out. Its common bearish interpretation has been confirmed for Upwork. Out of 4 times, UPWK closed lower 75.00% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the short side has been after 10 trading days, showing a win rate of 100.00% with an average market move of -11.17%.