PH closes above its opening price after recovering from early selling pressure
Parker-Hannifin Corporation (PH) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, PH finished Thursday at 130.55 edging higher $4.02 (3.18%), notably underperforming the S&P 500 (6.24%). Trading up to $5.86 lower after the open, the market managed to reverse during the session as bulls took control ending the day above its opening price. Closing within the prior day's range, prices missed to decisively move beyond the previous day's trading range in a lackluster session.
Daily Candlestick Chart (PH as at Mar 26, 2020):
Thursday's trading range has been $9.71 (7.53%), that's below the last trading month's daily average range of $12.80. 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 strongly higher than usual for PH.
During the whole day, prices traded within the prior day's range, unable to trade above the previous day's high or below the prior day's low forming an Inside Bar. Additionally, two candlestick patterns are matching today's price action, the Bullish Spinning Top which is known as bullish pattern and one bearish pattern, the Hanging Man. The last time a Bullish Spinning Top showed up on March 13th, PH actually lost -16.08% on the following trading day.
After trading down to 123.05 earlier during the day, the stock bounced off the key technical support level at 126.19 (S1). The failure to close below the support might increase that levels significance as support going forward. After having been unable to move above 134.99 in the previous session, Parker-Hannifin ran into sellers again around the same price level today, failing to move higher than 132.76.
Although the share is experiencing a short-term uptrend, this could just be a correction, as both the medium and long-term trends are still bearish.
Buying might accelerate should prices move above the close-by swing high at 134.99 where further buy stops could get activated.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bounced off Technical Support S1" stand out. Its common bullish interpretation has been confirmed for Parker-Hannifin. Out of 420 times, PH closed higher 56.67% 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 52.14% with an average market move of 0.46%.