PDCO closes lower for the 2nd day in a row
Patterson Companies Inc. (PDCO) Technical Analysis Report for Feb 14, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, PDCO ended the week 0.48% higher at 23.01 after losing $0.10 (-0.43%) today on low volume, underperforming the S&P 500 (0.18%) ahead of tomorrow's Presidents' Day market holiday. Closing below Thursday's low at 23.10, the share confirmed its breakout through the prior session low after trading up to $0.62 below it intraday.
Daily Candlestick Chart (PDCO as at Feb 14, 2020):
Friday's trading range has been $0.68 (2.94%), that's slightly above the last trading month's daily average range of $0.63. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently lower than usual for PDCO.
After trading down to 22.48 earlier during the day, the stock bounced off the key technical support level at 22.86 (S1). The failure to close below the support could increase that levels importance as support going forward. When prices bounced off a significant support level the last time on Tuesday, PDCO gained 1.42% on the following trading day.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Buying might accelerate should prices move above the close-by swing high at 23.53 where further buy stops could get activated. With prices trading close to this year's high at 23.90, upside momentum might speed up should Patterson Companies be able to break out to new highs for the year. Trading close to December's high at 24.06 we could see further upside momentum if potential buy stops at the level get triggered.
Among the four 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 Patterson Companies. Out of 460 times, PDCO closed higher 58.70% 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 53.48% with an average market move of 0.07%.