PCAR breaks back above 20-day moving average
PACCAR Inc. (PCAR) Technical Analysis Report for May 22, 2020 | by Techniquant Editorial Team
PCAR ended the week 2.38% higher at 68.42 after gaining $0.23 (0.34%) today on low volume, slightly underperforming the Nasdaq 100 (0.38%) ahead of tomorrow's Memorial Day market holiday. Trading up to $0.38 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 prior day's range, prices missed to decisively move beyond the previous day's trading range in a lackluster session.
Daily Candlestick Chart (PCAR as at May 22, 2020):
Friday's trading range has been $1.00 (1.47%), that's far below the last trading month's daily average range of $1.44. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for PCAR.
Three candlestick patterns are matching today's price action, the Bullish Short Candle and the White Candle which are both known as bullish patterns and one bearish pattern, the Thrusting Pattern.
PACCAR managed to close back above the 20-day moving average at 68.37. When this moving average was crossed above the last time on Monday, PCAR actually lost -2.03% on the following trading day.
The market shows weakness in the short-term (in accordance with its long-term downtrend) with only the medium-term trend still being bullish.
Buying could accelerate should prices move above the close-by swing high at 70.24 where further buy stops might get activated. Trading close to March's high at 71.08 we could see further upside momentum if potential buy stops at the level get triggered.
Among the eight market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Close to Swing High" stand out. Though it is usually interpreted as neutral, it has actually shown to be bullish for PACCAR. Out of 760 times, PCAR closed higher 51.97% 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 52.89% with an average market move of 0.31%.