UPWK finds buyers at key support level
Upwork Inc. (UPWK) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team
UPWK finished Thursday at 6.04 losing $0.34 (-5.33%), notably underperforming the S&P 500 (6.24%). Closing within the previous day's range, prices missed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (UPWK as at Mar 26, 2020):
Thursday's trading range has been $0.89 (13.86%), that's slightly above the last trading month's daily average range of $0.76. Things look different on the weekly timeframe, where the market's trading range of the last week has been below the market's average weekly trading range. The longer-term, monthly volatility is currently just the same than usual for UPWK.
In a volatile session, prices traded above the previous day's high as well as below the prior day's low, forming a bearish Outside Bar.
After trading down to 5.82 earlier during the day, the stock bounced off the key technical support level at 5.90 (S1). The failure to close below the support might increase that levels significance as support going forward. When prices bounced off a significant support level the last time on March 13th, UPWK actually lost -0.70% on the following trading day.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Among the two market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bearish Outside Bar" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for Upwork. Out of 17 times, UPWK closed higher 52.94% 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 58.82% with an average market move of 0.99%.