PAGS pops to highest close since January 17th
PagSeguro Digital Ltd. Class A (PAGS) Technical Analysis Report for Feb 14, 2020 | by Techniquant Editorial Team
Moving higher for the 5th day in a row, PAGS finished the week 9.18% higher at 35.22 after gaining $0.79 (2.29%) today, notably outperforming the S&P 500 (0.18%) ahead of tomorrow's Presidents' Day market holiday. Today's close at 35.22 marks the highest recorded closing price since January 17th. Closing above Thursday's high at 35.05, the market confirmed its breakout through the prior session high after trading up to $0.45 above it intraday.
Daily Candlestick Chart (PAGS as at Feb 14, 2020):
Friday's trading range has been $0.94 (2.71%), that's below the last trading month's daily average range of $1.20. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for PAGS.
One bullish candlestick pattern matches today's price action, the White Candle.
Prices are trading close to the key technical support level at 34.55 (S1).
Although still in a long-term downtrend, the short and medium-term trends both turned bullish already.
With prices trading close to this year's high at 37.50, upside momentum might accelerate should the share be able to break out to new highs for the year.
Among the three market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "5 Consecutive Higher Closes" stand out. Though it is usually interpreted as bullish, it has actually shown to be bearish for PagSeguro Digital. Out of 12 times, PAGS closed lower 75.00% 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 eight trading days, showing a win rate of 41.67% with an average market move of -0.94%.