PDCO closes lower for the 2nd day in a row
Patterson Companies Inc. (PDCO) Technical Analysis Report for Jun 30, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, PDCO ended the month 11.73% higher at 22.00 after losing $0.50 (-2.22%) today, notably underperforming the S&P 500 (1.54%). Closing below Monday's low at 22.30, Patterson Companies confirmed its breakout through the previous session low after trading up to $0.47 below it intraday.
Daily Candlestick Chart (PDCO as at Jun 30, 2020):
Tuesday's trading range has been $0.81 (3.6%), that's below the last trading month's daily average range of $1.09. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for PDCO.
One bearish candlestick pattern matches today's price action, the Black Candle.
Though still in a long-term downtrend, the short and medium-term trends both turned bullish already.
Buying might speed up should prices move above the nearby swing high at 23.08 where further buy stops could get activated.
Among the four market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Black Candle" stand out. While it is usually interpreted as bearish, it has actually shown to be bullish for Patterson Companies. Out of 479 times, PDCO closed higher 53.86% 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 55.74% with an average market move of 0.28%.