PCAR closes above its opening price after recovering from early selling pressure
PACCAR Inc. (PCAR) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, PCAR finished Thursday at 60.45 gaining $1.47 (2.49%), strongly underperforming the Nasdaq 100 (5.72%). Trading up to $1.36 lower after the open, the stock managed to reverse during the session as bulls took control ending the day above its opening price. Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range in a lackluster session.
Daily Candlestick Chart (PCAR as at Mar 26, 2020):
Thursday's trading range has been $3.22 (5.45%), that's below the last trading month's daily average range of $3.92. Things look different on the weekly timeframe, where the market's trading range of the last week has been above the market's average weekly trading range. The longer-term, monthly volatility is currently notably higher than usual for PCAR.
After trading down to 57.75 earlier during the day, the share bounced off the key technical support level at 58.00 (S1). The failure to close below the support might increase that levels importance as support going forward. After having been unable to move above 60.90 in the previous session, the market ran into sellers again around the same price level today, missing to move higher than 60.97. The last time this happened on March 19th, PCAR lost -6.66% on the following trading day.
While PACCAR is experiencing a short-term uptrend, this could just be a correction, as both the medium and long-term trends are still bearish.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bounced off Technical Support S1" stand out. Its common bullish interpretation has been confirmed for PACCAR. Out of 472 times, PCAR closed higher 56.36% 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 nine trading days, showing a win rate of 52.97% with an average market move of 0.13%.