ZYNE closes within previous day's range after lackluster session
Zynerba Pharmaceuticals Inc. (ZYNE) Technical Analysis Report for Dec 04, 2019 | by Techniquant Editorial Team
Moving lower for the 6th day in a row, ZYNE ended Wednesday at 5.97 edging lower $0.06 (-1.0%) on low volume, notably underperforming the S&P 500 (0.63%). Today's close at 5.97 marks the lowest recorded closing price since April 1st. 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 (ZYNE as at Dec 04, 2019):
Wednesday's trading range has been $0.24 (3.95%), that's far below the last trading month's daily average range of $0.41. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently lower than usual for ZYNE.
One bullish candlestick pattern matches today's price action, the Last Engulfing Bottom Pattern.
After trading down to 5.84 earlier during the day, the stock bounced off the key technical support level at 5.87 (S1). The failure to close below the support might increase that levels importance as support going forward. When prices bounced off a significant support level the last time on October 18th, ZYNE gained 6.46% on the following trading day. After having been unable to move above 6.12 in the prior session, the share ran into sellers again around the same price level today, missing to move higher than 6.08.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Among the four market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "6 Consecutive Lower Closes" stand out. Its common bearish interpretation has been confirmed for Zynerba Pharmaceuticals. Out of 15 times, ZYNE closed lower 73.33% 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 46.67% with an average market move of -2.43%.