ZYNE slumps, losing $0.40 (-8.18%) within a single day on high volume
Zynerba Pharmaceuticals Inc. (ZYNE) Technical Analysis Report for Feb 14, 2020 | by Techniquant Editorial Team
Moving lower for the 4th day in a row, ZYNE ended the week -10.74% lower at 4.49 after tanking $0.40 (-8.18%) today on high volume, notably underperforming the S&P 500 (0.18%) ahead of tomorrow's Presidents' Day market holiday. This is the biggest single-day loss in over two months. Today's close at 4.49 marks the lowest recorded closing price since January 28, 2019. Closing below Thursday's low at 4.80, Zynerba Pharmaceuticals confirmed its breakout through the previous session low after trading up to $0.42 below it intraday.
Daily Candlestick Chart (ZYNE as at Feb 14, 2020):
Friday's trading range has been $0.63 (12.83%), that's far above the last trading month's daily average range of $0.28. Weekly volatility is also higher, being slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for ZYNE.
In a volatile session, prices traded above the prior day's high as well as below the previous day's low, forming a bearish Outside Bar. Additionally, two candlestick patterns are matching today's price action, the Last Engulfing Bottom Pattern which is known as bullish pattern and one bearish pattern, the Black Candle.
After having been unable to move above 5.00 in the prior session, the stock ran into sellers again around the same price level today, failing to move higher than 5.01. The last time this happened on January 14th, ZYNE actually gained 8.07% on the following trading day.
Crossing below the lower Bollinger Band for the first time since January 9th, prices have shown unusually strong downward momentum in the short-term. This could either indicate a potential selling climax after which prices might head back up towards the mean of the Bollinger Bands at 5.17 or signal the beginning of a strong momentum breakout leading to even lower prices.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Among the 14 market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bearish Outside Bar" stand out. Its common bearish interpretation has been confirmed for Zynerba Pharmaceuticals. Out of 40 times, ZYNE closed lower 65.00% 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 65.00% with an average market move of -6.04%.