ZSAN closes higher for the 3rd day in a row
Zosano Pharma Corporation (ZSAN) Technical Analysis Report for Feb 13, 2019 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, ZSAN finished Wednesday at 2.40 surging $0.16 (7.14%), significantly outperforming the S&P 500 (0.3%). This is the biggest single-day gain in over two weeks. The last time we've seen such an unusually strong single-day gain on January 24th, ZSAN gained 6.17% on the following trading day. The bulls were in full control today, moving the market higher throughout the whole session. Closing above Tuesday's high at 2.30, the market confirmed its breakout through the prior session high after trading up to $0.12 above it intraday.
Daily Candlestick Chart (ZSAN as at Feb 13, 2019):
Wednesday's trading range has been $0.18 (8.04%), that's slightly below the last trading month's daily average range of $0.21. 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 ZSAN.
One bullish candlestick pattern matches today's price action, the White Candle.
The stock managed to close above the 20-day moving average at 2.30 for the first time since January 28th. Prices are trading close to the key technical resistance level at 2.49 (R1).
Although the share is experiencing a short-term uptrend, this might just be a correction, as both the medium and long-term trends are still bearish.
With prices trading close to this year's low at 2.00, downside momentum could speed up should Zosano Pharma break out to new lows for the year.
Among the eight market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "3 Consecutive Higher Closes" stand out. Though it is usually interpreted as bullish, it has actually shown to be bearish for Zosano Pharma. Out of 41 times, ZSAN closed lower 68.29% 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 73.17% with an average market move of -3.06%.