ZSAN closes higher for the 3rd day in a row
Zosano Pharma Corporation (ZSAN) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, ZSAN ended Wednesday at 1.77 edging higher $0.01 (0.57%), strongly outperforming the S&P 500 (-0.46%). Today's close at 1.77 marks the highest recorded closing price since August 21st. Closing within the previous day's range, prices missed to decisively move beyond the prior day's trading range in a lackluster session.
Daily Candlestick Chart (ZSAN as at Sep 16, 2020):
Wednesday's trading range has been $0.10 (5.68%), that's below the last trading month's daily average range of $0.14. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for ZSAN.
Two candlestick patterns are matching today's price action, the Bullish Spinning Top which is known as bullish pattern and one bearish pattern, the Shooting Star. The last time a Bullish Spinning Top showed up on September 8th, ZSAN gained 3.62% on the following trading day.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
With prices trading close to this year's high at 1.96, upside momentum might speed up should the market be able to break out to new highs for the year.
Among the three market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "3 Consecutive Higher Closes" stand out. Though it is usually interpreted as bullish, it has actually shown to be bearish for Zosano Pharma. Out of 57 times, ZSAN closed lower 66.67% 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 four trading days, showing a win rate of 68.42% with an average market move of -1.39%.