ZSAN climbs to highest close since June 8th
Zosano Pharma Corporation (ZSAN) Technical Analysis Report for Jul 31, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, ZSAN ended the month 16.28% higher at 1.00 after gaining $0.05 (5.26%) today on high volume, strongly outperforming the S&P 500 (0.77%). Today's close at 1.00 marks the highest recorded closing price since June 8th. Trading $0.06 higher after the open, Zosano Pharma 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 missed to decisively move beyond the previous day's trading range.
Daily Candlestick Chart (ZSAN as at Jul 31, 2020):
Friday's trading range has been $0.17 (16.5%), that's far above the last trading month's daily average range of $0.07. 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.
Two candlestick patterns are matching today's price action, the Bearish Spinning Top and the Bearish High-Wave Candle which are both known as bearish patterns.
After trading down to 0.92 earlier during the day, the share bounced off the key technical support level at 0.95 (S1). The failure to close below the support could increase that levels significance as support going forward. When prices bounced off a significant support level the last time on July 24th, ZSAN actually lost -3.41% on the following trading day.
Crossing above the upper Bollinger Band for the first time since July 21st, prices have shown unusually strong upward momentum in the short-term. This might either indicate a potential buying climax after which prices could head back down towards the mean of the Bollinger Bands at 0.87 or signal the beginning of a strong momentum breakout leading to even higher prices.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bearish High-Wave Candle" stand out. Its common bearish interpretation has been confirmed for Zosano Pharma. Out of 17 times, ZSAN closed lower 82.35% 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 82.35% with an average market move of -10.76%.