UTHR closes higher for the 2nd day in a row
United Therapeutics Corporation (UTHR) Technical Analysis Report for Jun 30, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, UTHR finished the month 2.59% higher at 121.00 after gaining $1.04 (0.87%) today, underperforming the S&P 500 (1.54%). Trading up to $0.69 lower after the open, the share managed to reverse during the session as bulls took control ending the day above its opening price. Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range in a lackluster session.
Daily Candlestick Chart (UTHR as at Jun 30, 2020):
Tuesday's trading range has been $1.81 (1.51%), that's far below the last trading month's daily average range of $3.54. 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 slightly higher than usual for UTHR.
During the whole day, prices traded within the previous day's range, unable to trade above the prior day's high or below the previous day's low forming an Inside Bar. Additionally, two candlestick patterns are matching today's price action, the Bullish Short Candle and the White Candle which are both known as bullish patterns.
The market managed to close back above the 20-day moving average at 120.10. When this moving average was crossed above the last time on June 23rd, UTHR gained 0.40% on the following trading day. Prices are trading close to the key technical resistance level at 121.78 (R1).
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
2019's high at 128.94 is within reach and we could see further upside momentum should United Therapeutics manage to break out beyond.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bullish Short Candle" stand out. Though it is usually interpreted as bullish, it has actually shown to be bearish for United Therapeutics. Out of 58 times, UTHR closed lower 60.34% 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 63.79% with an average market move of -1.57%.