PCAR unable to break through key resistance level
PACCAR Inc. (PCAR) Technical Analysis Report for Feb 14, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, PCAR finished the week -0.89% lower at 74.74 after edging lower $0.09 (-0.12%) today, slightly underperforming the Nasdaq 100 (0.29%) ahead of tomorrow's Presidents' Day market holiday. Trading up to $0.61 lower after the open, the share managed to reverse during the session as bulls took control ending the day above its opening price. The last time this happened on January 30th, PCAR actually lost -2.43% on the following trading day. Ending the day with an indecisive close, neither buyers nor sellers were able to gain control during the session.
Daily Candlestick Chart (PCAR as at Feb 14, 2020):
Friday's trading range has been $0.77 (1.03%), that's far below the last trading month's daily average range of $1.32. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for PCAR.
Two candlestick patterns are matching today's price action, the Bullish Spinning Top and the Takuri Line which are both known as bullish patterns.
Unable to break through the key technical resistance level at 74.85 (R1), the stock closed below it after spiking up to 74.86 earlier during the day. The failure to close above the resistance could increase that levels significance going forward.
PACCAR shows strength in the short-term supported by its long-term uptrend with only the medium-term trend being bearish.
With prices trading close to this year's low at 73.86, downside momentum might speed up should the market break out to new lows for the year.
Among the six 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 PACCAR. Out of 320 times, PCAR closed higher 52.81% 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 54.38% with an average market move of 0.66%.