PCAR closes above its opening price after recovering from early selling pressure
PACCAR Inc. (PCAR) Technical Analysis Report for Jul 31, 2020 | by Techniquant Editorial Team
PCAR finished the month 13.67% higher at 85.08 after gaining $0.47 (0.56%) today, significantly underperforming the Nasdaq 100 (1.78%). Trading up to $0.53 lower after the open, the market managed to reverse during the session as bulls took control ending the day above its opening price. The last time this happened on July 20th, PCAR gained 4.99% on the following trading day. Closing within the prior day's range, prices missed to decisively move beyond the previous day's trading range.
Daily Candlestick Chart (PCAR as at Jul 31, 2020):
Friday's trading range has been $1.39 (1.65%), that's slightly below the last trading month's daily average range of $1.75. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently higher than usual for PCAR.
One bullish candlestick pattern matches today's price action, the White Candle.
After having been unable to move above 85.13 in the prior session, the stock ran into sellers again around the same price level today, failing to move higher than 85.09.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "White Candle" stand out. Its common bullish interpretation has been confirmed for PACCAR. Out of 544 times, PCAR closed higher 50.18% 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 54.23% with an average market move of 0.51%.