PETS closes above its opening price after recovering from early selling pressure
PetMed Express Inc. (PETS) Technical Analysis Report for Jul 31, 2020 | by Techniquant Editorial Team
PETS ended the month -12.46% lower at 31.20 after gaining $0.20 (0.65%) today, slightly underperforming the S&P 500 (0.77%). Trading up to $0.55 lower after the open, the stock managed to reverse during the session as bulls took control ending the day above its opening price. Closing above Thursday's high at 31.15, the market confirmed its breakout through the previous session high after trading up to $0.23 above it intraday.
Daily Candlestick Chart (PETS as at Jul 31, 2020):
Friday's trading range has been $0.85 (2.73%), that's below the last trading month's daily average range of $2.19. 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 PETS. Prices continued to consolidate within a tight trading range between 30.10 and 32.00 where it has been caught now for the whole last trading week.
Two candlestick patterns are matching today's price action, the Bullish Spinning Top and the Takuri Line which are both known as bullish patterns. The last time a Bullish Spinning Top showed up on July 2nd, PETS gained 2.92% on the following trading day.
Prices are trading close to the key technical support level at 30.49 (S1). PetMed Express found buyers again today around 30.53 for the third trading day in a row after having found demand at 30.49 in the prior session and at 30.63 two days ago.
Although still in a long-term uptrend, the short and medium-term trends both turned bearish already.
Buying could accelerate should prices move above the nearby swing high at 32.00 where further buy stops might get activated. Selling could speed up should prices move below the close-by swing low at 30.49 where further sell stops might get triggered. Trading close to May's low at 30.08 we could see further downside momentum if potential sell stops at the level get activated.
Among the eight market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Closed above last periods high" stand out. While it is usually interpreted as bullish, it has actually shown to be bearish for PetMed Express. Out of 435 times, PETS closed lower 53.10% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the short side has been after three trading days, showing a win rate of 54.94% with an average market move of -0.25%.