PEN breaks below Thursday's low
Penumbra Inc. (PEN) Technical Analysis Report for Aug 14, 2020 | by Techniquant Editorial Team
PEN ended the week -0.25% lower at 233.61 after losing $5.12 (-2.14%) today on low volume, strongly underperforming the S&P 500 (-0.02%). The bears were in full control today, moving the market lower throughout the whole session. Closing below Thursday's low at 236.96, the market confirmed its breakout through the previous session low after trading up to $3.90 below it intraday.
Daily Candlestick Chart (PEN as at Aug 14, 2020):
Friday's trading range has been $5.14 (2.16%), that's below the last trading month's daily average range of $7.05. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for PEN.
One bearish candlestick pattern matches today's price action, the Black Candle.
Prices broke below the key technical support level at 237.23 (now R1), which is likely to act as resistance going forward. The last time this happened on July 13th, PEN actually gained 0.55% on the following trading day.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Selling could accelerate should prices move below the nearby swing low at 228.63 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. Though it is usually interpreted as neutral, it has actually shown to be bullish for Penumbra. Out of 305 times, PEN closed higher 55.08% 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 60.33% with an average market move of 1.98%.