PH closes within prior day's range after lackluster session
Parker-Hannifin Corporation (PH) Technical Analysis Report for May 22, 2020 | by Techniquant Editorial Team
PH ended the week 8.87% higher at 166.88 after edging higher $0.15 (0.09%) today on low volume, slightly underperforming the S&P 500 (0.24%) ahead of tomorrow's Memorial Day market holiday. Closing within the prior day's range, prices failed to decisively move beyond the previous day's trading range in a lackluster session.
Daily Candlestick Chart (PH as at May 22, 2020):
Friday's trading range has been $4.22 (2.52%), that's far below the last trading month's daily average range of $6.80. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for PH.
One bearish candlestick pattern matches today's price action, the Hanging Man. The last time a Hanging Man showed up on May 11th, PH lost -3.58% on the following trading day.
Though still in a long-term downtrend, the short and medium-term trends both turned bullish already.
Buying might speed up should prices move above the close-by swing high at 171.05 where further buy stops could get triggered.
Among the two market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Close to Swing High" stand out. While it is usually interpreted as neutral, it has actually shown to be bullish for Parker-Hannifin. Out of 758 times, PH closed higher 51.72% 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 55.01% with an average market move of 0.47%.