UPWK still stuck within tight trading range
Upwork Inc. (UPWK) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team
UPWK finished Wednesday at 15.42 gaining $0.50 (3.35%), notably outperforming the S&P 500 (-0.46%). Closing above Tuesday's high at 15.13, the stock confirmed its breakout through the previous session high after trading up to $0.50 above it intraday.
Daily Candlestick Chart (UPWK as at Sep 16, 2020):
Wednesday's trading range has been $0.77 (5.16%), that's slightly below the last trading month's daily average range of $0.80. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for UPWK. Prices continued to consolidate within a tight trading range between 14.74 and 15.70 where it has been caught now for the whole last trading week.
Two candlestick patterns are matching today's price action, the White Candle which is known as bullish pattern and one bearish pattern, the Bearish Hikkake Pattern.
Unable to break through the key technical resistance level at 15.53 (R1), the share closed below it after spiking up to 15.63 earlier during the day. The failure to close above the resistance could increase that levels importance going forward. The market was bought again around 14.86 after having seen lows at 14.77, 14.74 and 14.80 in the last three trading sessions. Obviously there is something going on at that level. The last time this happened on June 10th, UPWK actually lost -8.37% on the following trading day.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Selling might accelerate should prices move below the close-by swing low at 14.74 where further sell stops could get activated. As prices are trading close to September's high at 16.32, upside momentum might speed up should Upwork mark new highs for the month.
Among the nine 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 26 times, UPWK closed lower 53.85% 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 57.69% with an average market move of -2.31%.