PDCO pushes through Thursday's high
Patterson Companies Inc. (PDCO) Technical Analysis Report for Jul 31, 2020 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, PDCO ended the month 20.73% higher at 26.56 after gaining $0.37 (1.41%) today on high volume, outperforming the S&P 500 (0.77%). Today's close at 26.56 marks the highest recorded closing price since February 28, 2018. The bulls were in full control today, moving the market higher throughout the whole session. Closing above Thursday's high at 26.25, Patterson Companies confirmed its breakout through the previous session high after trading up to $0.35 above it intraday.
Daily Candlestick Chart (PDCO as at Jul 31, 2020):
Friday's trading range has been $0.66 (2.53%), that's below the last trading month's daily average range of $0.85. 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 bullish candlestick pattern matches today's price action, the White Candle.
Buyers managed to take out the key technical resistance level at 26.30 (now S1), which is likely to act as support going forward. The last time this happened on July 1st, PDCO actually lost -1.39% on the following trading day.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Among the eight market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "52 Week High" stand out. Its common bullish interpretation has been confirmed for Patterson Companies. Out of 107 times, PDCO closed higher 53.27% 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 two trading days, showing a win rate of 57.01% with an average market move of 0.04%.