ZSAN fails to close above 100-day moving average
Zosano Pharma Corporation (ZSAN) Technical Analysis Report for May 22, 2020 | by Techniquant Editorial Team
ZSAN ended the week 1.19% higher at 0.85 after flat today, slightly underperforming the S&P 500 (0.24%) ahead of tomorrow's Memorial Day market holiday. Closing within the prior day's range, prices missed to decisively move beyond the previous day's trading range in a lackluster session.
Daily Candlestick Chart (ZSAN as at May 22, 2020):
Friday's trading range has been $0.04 (4.6%), that's below the last trading month's daily average range of $0.06. 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 0.80 and 0.89 where it has been caught now for the whole last trading week.
After spiking up to 0.88 during the day, Zosano Pharma found resistance at the 100-day moving average at 0.88. The last time this happened on Wednesday, ZSAN lost -2.30% on the following trading day. The stock was sold again around 0.88 after having seen highs at 0.88, 0.89 and 0.89 in the last three trading sessions. Obviously there is something going on at that level.
Though still in a long-term downtrend, the short and medium-term trends both turned bullish already.
As prices are trading close to May's high at 0.92, upside momentum might accelerate should the market mark new highs for the month.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bearish Bounce off SMA 100" stand out. Although it is usually interpreted as bearish, it has actually shown to be bullish for Zosano Pharma. Out of 13 times, ZSAN closed higher 61.54% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the long side has been after three trading days, showing a win rate of 61.54% with an average market move of 7.60%.