ZSAN breaks back above 50-day moving average
Zosano Pharma Corporation (ZSAN) Technical Analysis Report for Jun 30, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, ZSAN ended the month -12.24% lower at 0.86 after gaining $0.04 (4.88%) today, notably outperforming the S&P 500 (1.54%). Trading up to $0.03 lower after the open, the stock managed to reverse during the session as bulls took control ending the day above its opening price. Closing above Monday's high at 0.84, the market confirmed its breakout through the previous session high after trading up to $0.02 above it intraday.
Daily Candlestick Chart (ZSAN as at Jun 30, 2020):
Tuesday's trading range has been $0.06 (7.23%), that's slightly 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 0.88 where it has been caught now for the whole last trading week.
Two candlestick patterns are matching today's price action, the Tweezer Bottom and the White Candle which are both known as bullish patterns. The last time a White Candle showed up on June 8th, ZSAN actually lost -10.00% on the following trading day.
The share managed to close back above the 50-day moving average at 0.86 for the first time since June 24th. After having been unable to move lower than 0.80 in the prior session, Zosano Pharma found buyers again around the same price level today at 0.80.
ZSAN shows weakness in the short-term (in accordance with its long-term downtrend) with only the medium-term trend still being bullish.
Buying might accelerate should prices move above the nearby swing high at 0.91 where further buy stops could get triggered.
Among the 13 market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bullish Break through SMA 50" stand out. Although it is usually interpreted as bullish, it has actually shown to be bearish for Zosano Pharma. Out of 35 times, ZSAN closed lower 62.86% 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 74.29% with an average market move of -7.61%.