ZSAN surges 39.66% on high volume
Zosano Pharma Corporation (ZSAN) Technical Analysis Report for Feb 14, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, ZSAN finished the week -1.22% lower at 0.81 after surging $0.23 (39.66%) today on high volume, notably outperforming the S&P 500 (0.18%) ahead of tomorrow's Presidents' Day market holiday. This is the biggest single-day gain in over two months. The last time we've seen such an unusually strong single-day gain on Tuesday, ZSAN actually lost -48.54% on the following trading day. The bulls were in full control today, moving the market higher throughout the whole session. Ending with a strong close near the high of the day sets a bullish note for the next session.
Daily Candlestick Chart (ZSAN as at Feb 14, 2020):
Friday's trading range has been $0.26 (42.62%), that's far above the last trading month's daily average range of $0.09. Weekly volatility is also higher, being way above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for ZSAN.
One bullish candlestick pattern matches today's price action, the White Candle.
Unable to break through the key technical resistance level at 0.82 (R1), the stock closed below it after spiking up to 0.86 earlier during the day. The failure to close above the resistance could increase that levels importance going forward.
Crossing above the lower Bollinger Band, prices have lost at least some of their downward momentum in the short-term and might now be heading back up towards the mean of the Bollinger Bands at 1.12.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Among the eight market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Up Close near high of period" stand out. Though it is usually interpreted as bullish, it has actually shown to be bearish for Zosano Pharma. Out of 154 times, ZSAN closed lower 59.74% 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 71.43% with an average market move of -2.36%.