PH snaps to lowest close since October 31st
Parker-Hannifin Corporation (PH) Technical Analysis Report for Dec 07, 2018 | by Techniquant Editorial Team
Moving lower for the 3rd day in a row, PH finished the week -8.72% lower at 157.04 after tanking $6.28 (-3.85%) today, strongly underperforming the S&P 500 (-2.33%) following today's NFP report. Today's close at 157.04 marks the lowest recorded closing price since October 31st. The bears were in full control today, moving the market lower throughout the whole session. Closing within the previous day's range, prices missed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (PH as at Dec 07, 2018):
Friday's trading range has been $9.11 (5.56%), that's far above the last trading month's daily average range of $4.64. Weekly volatility is also higher, being way above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for PH.
In a volatile session, prices traded above the previous day's high as well as below the prior day's low, forming a bearish Outside Bar. Additionally, two candlestick patterns are matching today's price action, the Last Engulfing Bottom Pattern which is known as bullish pattern and one bearish pattern, the Black Candle.
After having been unable to move lower than 156.94 in the previous session, the share found buyers again around the same price level today at 156.20.
Crossing below the lower Bollinger Band for the first time since October 15th, prices have shown unusually strong downward momentum in the short-term. This might either indicate a potential selling climax after which prices could head back up towards the mean of the Bollinger Bands at 166.88 or signal the beginning of a strong momentum breakout leading to even lower prices. The last time prices broke out below the lower Bollinger Band on October 9th, PH lost -3.49% on the following trading day.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Further selling might move prices lower should the market test November's close-by low at 150.22.
Among the 12 market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Close near low of period" stand out. Although it is usually interpreted as bearish, it has actually shown to be bullish for Parker-Hannifin. Out of 500 times, PH closed higher 55.80% 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 59.40% with an average market move of 1.01%.