PB pops to highest close since May 3, 2019
Prosperity Bancshares Inc. (PB) Technical Analysis Report for Feb 14, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, PB ended the week 2.2% higher at 74.00 after edging higher $0.11 (0.15%) today, slightly underperforming the S&P 500 (0.18%) ahead of tomorrow's Presidents' Day market holiday. Today's close at 74.00 marks the highest recorded closing price since May 3, 2019. Closing above Thursday's high at 73.97, the stock confirmed its breakout through the previous session high after trading up to $0.30 above it intraday.
Daily Candlestick Chart (PB as at Feb 14, 2020):
Friday's trading range has been $0.57 (0.77%), that's far below the last trading month's daily average range of $1.12. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently higher than usual for PB.
Two candlestick patterns are matching today's price action, the Bullish Short Candle and the White Candle which are both known as bullish patterns.
Unable to break through the key technical resistance level at 74.08 (R1), Prosperity Bancshares closed below it after spiking up to 74.27 earlier during the day. The failure to close above the resistance could increase that levels importance going forward. When prices bounced off a significant resistance level the last time on January 29th, PB actually gained 2.64% on the following trading day.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Selling might speed up should prices move below the close-by swing low at 73.00 where further sell stops could get triggered. 2019's high at 75.36 is within reach and we might see further upside momentum should the market manage to break out beyond.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bullish Short Candle" stand out. Its common bullish interpretation has been confirmed for Prosperity Bancshares. Out of 75 times, PB closed higher 65.33% 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 58.67% with an average market move of 0.06%.