ZSAN closes within previous day's range
Zosano Pharma Corporation (ZSAN) Technical Analysis Report for Jun 14, 2019 | by Techniquant Editorial Team
ZSAN finished the week 0.36% higher at 2.77 after edging lower $0.01 (-0.36%) today, slightly underperforming the S&P 500 (-0.16%). Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (ZSAN as at Jun 14, 2019):
Friday's trading range has been $0.15 (5.42%), that's slightly below the last trading month's daily average range of $0.18. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for ZSAN. Prices continued to consolidate within a tight trading range between 2.68 and 2.85 where it has been caught now for the last three trading days.
Four candlestick patterns are matching today's price action, the Southern Doji which is known as bullish pattern and three neutral patterns, the Doji, the Long-Legged Doji and the Rickshaw-Man. The last time a Southern Doji showed up on May 24th, ZSAN gained 8.06% on the following trading day.
Prices are trading close to the key technical support level at 2.68 (S1). After spiking up to 2.85 during the day, the stock found resistance at the 20-day moving average at 2.83. The share found buyers again today around 2.70 for the third trading day in a row after having found demand at 2.68 in the previous session and at 2.69 two days ago.
While still in a long-term uptrend, the short and medium-term trends both turned bearish already.
Buying could accelerate should prices move above the close-by swing high at 2.93 where further buy stops might get triggered. Selling could speed up should prices move below the nearby swing low at 2.68 where further sell stops might get activated. As prices are trading close to June's high at 3.05, upside momentum could accelerate should the market mark new highs for the month.
Among the nine market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Low close to prior two Lows" stand out. Though it is usually interpreted as bullish, it has actually shown to be bearish for Zosano Pharma. Out of 137 times, ZSAN closed lower 59.85% 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 56.20% with an average market move of -1.58%.