ZYNE rallies, gaining $1.00 (18.25%) within a single day on high volume
Zynerba Pharmaceuticals Inc. (ZYNE) Technical Analysis Report for May 22, 2020 | by Techniquant Editorial Team
Moving higher for the 5th day in a row, ZYNE finished the week 61.6% higher at 6.48 after surging $1.00 (18.25%) today on high volume, notably outperforming the S&P 500 (0.24%) ahead of tomorrow's Memorial Day market holiday. This is the biggest single-day gain in over nine months. Today's close at 6.48 marks the highest recorded closing price since November 26, 2019. The bulls were in full control today, moving the market higher throughout the whole session. Closing above Thursday's high at 5.60, Zynerba Pharmaceuticals confirmed its breakout through the previous session high after trading up to $1.00 above it intraday.
Daily Candlestick Chart (ZYNE as at May 22, 2020):
Friday's trading range has been $1.17 (20.93%), that's far above the last trading month's daily average range of $0.45. Weekly volatility is also higher, being way above the market's average weekly trading range. The longer-term, monthly volatility is currently higher than usual for ZYNE.
One bullish candlestick pattern matches today's price action, the White Candle.
The stock managed to close above the 200-day moving average at 6.33 for the first time since September 18, 2019. When this moving average was crossed above the last time on April 2, 2019, ZYNE gained 14.20% on the following trading day.
With another close above the upper Bollinger Band, prices are confirming their strong upward momentum in the short-term. A drop back into the Bollinger Band on the next trading day although could signal a potential change in momentum that might lead to a correction back down towards the center of the Bollinger Bands at 4.36.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Among the 11 market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bullish Break through SMA 200" stand out. Its common bullish interpretation has been confirmed for Zynerba Pharmaceuticals. Out of 11 times, ZYNE closed higher 54.55% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the long side has been after 10 trading days, showing a win rate of 63.64% with an average market move of 5.30%.