ZSAN plunges $0.14 (-4.79%) after posting earnings
Zosano Pharma Corporation (ZSAN) Technical Analysis Report for Aug 15, 2019 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, ZSAN finished Thursday at 2.78 tanking $0.14 (-4.79%), strongly underperforming the S&P 500 (0.25%) following Wednesday's earnings report. Closing below Wednesday's low at 2.84, the market confirmed its breakout through the prior session low after trading up to $0.27 below it intraday.
Daily Candlestick Chart (ZSAN as at Aug 15, 2019):
ZSAN reported earnings of $-0.55 per share after Wednesday's market close. The company's last earnings report was released on May 14, 2019, when Zosano Pharma Corporation reported earnings of $-0.79 per share.
Thursday's trading range has been $0.37 (12.59%), that's far above the last trading month's daily average range of $0.20. Weekly volatility is also higher, being above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for ZSAN.
After trading down to 2.57 earlier during the day, Zosano Pharma bounced off the key technical support level at 2.68 (S1). The failure to close below the support might increase that levels importance as support going forward. The stock closed back below the 20-day moving average at 2.88. When this moving average was crossed below the last time on July 22nd, ZSAN lost -3.70% on the following trading day.
Although the share is experiencing a short-term uptrend, this could just be a correction, as both the medium and long-term trends are still bearish.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the Stock Earning Report based market condition "Trading Day post Earnings Report" stand out. Though it is usually interpreted as neutral, it has actually shown to be bearish for Zosano Pharma. Out of 16 times, ZSAN closed lower 62.50% 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 62.50% with an average market move of -5.54%.