ALXN breaks back below 20-day moving average
Alexion Pharmaceuticals Inc. (ALXN) Technical Analysis Report for Oct 27, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, ALXN finished Tuesday at 120.00 losing $0.76 (-0.63%) on low volume, strongly underperforming the Nasdaq 100 (0.82%). Trading $1.37 higher after the open, the stock was unable to hold its gains as the bears took control ending the day below its opening price. 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 (ALXN as at Oct 27, 2020):
Tuesday's trading range has been $2.01 (1.67%), that's below the last trading month's daily average range of $3.88. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for ALXN. Prices continued to consolidate within a tight trading range between 118.93 and 121.97 where it has been caught now for the last three trading days.
Prices are trading close to the key technical support level at 118.93 (S1). The share closed back below the 20-day moving average at 120.44 for the first time since October 21st. When this moving average was crossed below the last time on October 21st, ALXN actually gained 1.25% on the following trading day.
Although the market is currently in a short-term downtrend, this could just be a correction, as both the medium and long-term trends are still bullish.
Buying might speed up should prices move above the nearby swing high at 121.97 where further buy stops could get triggered. Selling might accelerate should prices move below the close-by swing low at 118.93 where further sell stops could get activated.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Close to Swing Low" stand out. Though it is usually interpreted as neutral, it has actually shown to be bullish for Alexion Pharmaceuticals. Out of 725 times, ALXN closed higher 53.66% 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 56.28% with an average market move of 1.01%.