ZSAN closes below its opening price unable to hold early session gains
Zosano Pharma Corporation (ZSAN) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team
ZSAN ended Thursday at 0.57 losing $0.01 (-1.72%), significantly underperforming the S&P 500 (6.24%). Trading $0.02 higher after the open, the stock was unable to hold its gains as the bears took control ending the day below its opening price. Closing within the prior day's range, prices failed to decisively move beyond the previous day's trading range in a lackluster session.
Daily Candlestick Chart (ZSAN as at Mar 26, 2020):
Thursday's trading range has been $0.05 (8.62%), that's below the last trading month's daily average range of $0.12. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for ZSAN.
During the whole day, prices traded within the prior day's range, unable to trade above the previous day's high or below the prior day's low forming an Inside Bar. Additionally, one bearish candlestick pattern matches today's price action, the Bearish Spinning Top. The last time a Bearish Spinning Top showed up on February 10th, ZSAN actually gained 18.39% on the following trading day.
Prices are trading close to the key technical support level at 0.52 (S1). After having been unable to move lower than 0.54 in the previous session, the market found buyers again around the same price level today at 0.55.
Though 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.
Buying could speed up should prices move above the nearby swing high at 0.63 where further buy stops might get triggered. With prices trading close to this year's low at 0.40, downside momentum could accelerate should Zosano Pharma break out to new lows for the year.
Among the four market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bearish Spinning Top" stand out. Its common bearish interpretation has been confirmed for Zosano Pharma. Out of 120 times, ZSAN closed lower 60.00% 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 64.17% with an average market move of -3.02%.