PDCO breaks back below 200-day moving average
Patterson Companies Inc. (PDCO) Technical Analysis Report for Nov 09, 2018 | by Techniquant Editorial Team
PDCO finished the week 3.57% higher at 23.82 after tanking $1.03 (-4.14%) today, notably underperforming the S&P 500 (-0.92%). This is the biggest single-day loss in over three weeks. The bears were in full control today, moving the market lower throughout the whole session. Closing below Thursday's low at 24.07, the share confirmed its breakout through the previous session low after trading up to $0.51 below it intraday.
Daily Candlestick Chart (PDCO as at Nov 09, 2018):
Friday's trading range has been $1.49 (5.98%), that's far above the last trading month's daily average range of $0.90. Weekly volatility is also higher, being above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for PDCO.
Even with a strong opening Patterson Companies closed below the prior day's open and close, forming a bearish Engulfing Candle. Additionally, one bearish candlestick pattern matches today's price action, the Black Candle.
After trading as low as 23.56 during the day, the stock found support at the 100-day moving average at 23.66. The market closed back below the 200-day moving average at 24.35. After having been unable to move above 25.15 in the previous session, PDCO ran into sellers again around the same price level today, missing to move higher than 25.05. The last time this happened on October 31st, PDCO actually gained 4.07% on the following trading day.
Crossing below the upper Bollinger Band, prices have lost at least some of their upward momentum in the short-term and could now be heading back down towards the mean of the Bollinger Bands at 23.50.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Among the 14 market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bullish Bounce off SMA 100" stand out. Its common bullish interpretation has been confirmed for Patterson Companies. Out of 35 times, PDCO closed higher 74.29% 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 65.71% with an average market move of 0.99%.