PAA falls to lowest close since April 24th
Plains All American Pipeline L.P. (PAA) Technical Analysis Report for Jul 31, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, PAA ended the month -13.57% lower at 7.64 after losing $0.07 (-0.91%) today, notably underperforming the S&P 500 (0.77%). Today's close at 7.64 marks the lowest recorded closing price since April 24th. Closing within the prior day's range, prices failed to decisively move beyond the previous day's trading range.
Daily Candlestick Chart (PAA as at Jul 31, 2020):
Friday's trading range has been $0.37 (4.82%), that's slightly below the last trading month's daily average range of $0.40. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for PAA.
Two candlestick patterns are matching today's price action, the Takuri Line which is known as bullish pattern and one bearish pattern, the Bearish Spinning Top. The last time a Takuri Line showed up on July 10th, PAA actually lost -4.40% on the following trading day.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Buying could speed up should prices move above the close-by swing high at 8.11 where further buy stops might get activated.
Among the four market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Takuri Line" stand out. Its common bullish interpretation has been confirmed for Plains All. Out of 64 times, PAA closed higher 54.69% 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 54.69% with an average market move of -0.12%.