PBH dominated by bears dragging the market lower throughout the day
Prestige Consumer Healthcare Inc. (PBH) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, PBH finished Wednesday at 35.59 losing $0.43 (-1.19%), underperforming the S&P 500 (-0.46%). Today's close at 35.59 marks the lowest recorded closing price since March 26th. The bears were in full control today, moving the market lower throughout the whole session. Closing below Tuesday's low at 35.92, Prestige Consumer confirmed its breakout through the prior session low after trading up to $0.38 below it intraday.
Daily Candlestick Chart (PBH as at Sep 16, 2020):
Wednesday's trading range has been $0.72 (1.99%), that's slightly below the last trading month's daily average range of $0.82. 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 lower than usual for PBH.
One bearish candlestick pattern matches today's price action, the Black Candle.
Prices are trading close to the key technical support level at 34.90 (S1).
Crossing below the lower Bollinger Band for the first time since September 8th, prices have shown unusually strong downward momentum in the short-term. This might either indicate a potential selling climax after which prices could head back up towards the mean of the Bollinger Bands at 36.78 or signal the beginning of a strong momentum breakout leading to even lower prices. The last time prices broke out below the lower Bollinger Band on September 8th, PBH actually gained 1.48% on the following trading day.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Trading close to July's low at 34.95 we might see further downside momentum if potential sell stops at the level get triggered.
Among the nine market conditions that our pattern recognition engine identified today, the statistics for the Technical Indicators based market condition "Close crossed below the lower Bollinger Band" stand out. Although it is usually interpreted as bearish, it has actually shown to be bullish for Prestige Consumer. Out of 69 times, PBH closed higher 56.52% of the time on the next trading day after the market condition occurred.