UPWK finds buyers at key support level
Upwork Inc. (UPWK) Technical Analysis Report for May 22, 2020 | by Techniquant Editorial Team
UPWK ended the week -10.35% lower at 12.30 after edging lower $0.08 (-0.65%) today, underperforming the S&P 500 (0.24%) ahead of tomorrow's Memorial Day market holiday. Closing within the prior day's range, prices failed to decisively move beyond the previous day's trading range in a lackluster session.
Daily Candlestick Chart (UPWK as at May 22, 2020):
Friday's trading range has been $0.57 (4.57%), that's below the last trading month's daily average range of $0.92. 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.
One bearish candlestick pattern matches today's price action, the Bearish Hikkake Pattern.
After trading down to 11.93 earlier during the day, the stock bounced off the key technical support level at 12.23 (S1). The failure to close below the support might increase that levels significance as support going forward. After having been unable to move above 12.44 in the prior session, Upwork ran into sellers again around the same price level today, failing to move higher than 12.50. The last time this happened on Monday, UPWK actually gained 1.37% on the following trading day.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Among the three market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bearish Hikkake Pattern" stand out. Its common bearish interpretation has been confirmed for Upwork. Out of 21 times, UPWK closed lower 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 short side has been after 10 trading days, showing a win rate of 57.14% with an average market move of -3.59%.