PBH breaks below key technical support level
Prestige Consumer Healthcare Inc. (PBH) Technical Analysis Report for Feb 14, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, PBH finished the week -7.59% lower at 42.47 after losing $0.96 (-2.21%) today, significantly underperforming the S&P 500 (0.18%) ahead of tomorrow's Presidents' Day market holiday. The bears were in full control today, moving the market lower throughout the whole session. Closing below Thursday's low at 43.21, the market confirmed its breakout through the prior session low after trading up to $0.77 below it intraday.
Daily Candlestick Chart (PBH as at Feb 14, 2020):
Friday's trading range has been $1.24 (2.86%), that's slightly below the last trading month's daily average range of $1.24. 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 higher than usual for PBH.
One bearish candlestick pattern matches today's price action, the Black Candle.
Prices broke below the key technical support level at 43.02 (now R1), which is likely to act as resistance going forward. The last time this happened on January 31st, PBH lost -0.86% on the following trading day.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Among the eight market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "2 Consecutive Lower Closes" stand out. Although it is usually interpreted as bearish, it has actually shown to be bullish for Prestige Consumer. Out of 303 times, PBH closed higher 54.79% 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 58.42% with an average market move of 1.17%.