PDCO closes above its opening price after recovering from early selling pressure
Patterson Companies Inc. (PDCO) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team
PDCO ended Thursday at 17.28 gaining $0.27 (1.59%), significantly underperforming the S&P 500 (6.24%). Trading up to $0.57 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 March 17th, PDCO actually lost -19.12% on the following trading day. Closing within the previous day's range, prices missed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (PDCO as at Mar 26, 2020):
Thursday's trading range has been $1.33 (7.71%), that's slightly below the last trading month's daily average range of $1.87. Weekly volatility is also lower, being way below the market's average weekly trading range. The longer-term, monthly volatility is currently strongly higher than usual for PDCO. Prices continued to consolidate within a tight trading range between 15.17 and 18.04 where it has been caught now for the whole last trading week.
One neutral candlestick pattern matches today's price action, the Doji.
Unable to break through the key technical resistance level at 17.69 (R1), the share closed below it after spiking up to 18.01 earlier during the day. The failure to close above the resistance might increase that levels significance going forward. Patterson Companies ran into sellers again today around 18.01 for the third trading day in a row after having found sellers at 17.81 in the previous session and at 18.04 two days ago.
Though still in a long-term uptrend, the short and medium-term trends both turned bearish already.
Buying could accelerate should prices move above the close-by swing high at 18.04 where further buy stops might get activated. Selling could speed up should prices move below the nearby swing low at 16.07 where further sell stops might get triggered.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Close to Swing Low" stand out. While it is usually interpreted as neutral, it has actually shown to be bullish for Patterson Companies. Out of 723 times, PDCO closed higher 52.84% 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 55.88% with an average market move of 0.15%.