PH closes within previous day's range
Parker-Hannifin Corporation (PH) Technical Analysis Report for Jul 31, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, PH finished the month -2.37% lower at 178.92 after losing $1.60 (-0.89%) today, significantly underperforming the S&P 500 (0.77%). 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 Jul 31, 2020):
Friday's trading range has been $4.25 (2.36%), that's slightly below the last trading month's daily average range of $4.41. 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 slightly lower than usual for PH.
During the whole day, prices traded within the previous day's range, unable to trade above the prior day's high or below the previous day's low forming an Inside Bar. Additionally, one bullish candlestick pattern matches today's price action, the Takuri Line. The last time a Takuri Line showed up on June 12th, PH gained 1.93% on the following trading day.
The market closed below the 200-day moving average at 179.41 for the first time since July 13th. After having been unable to move lower than 175.02 in the prior session, Parker-Hannifin found buyers again around the same price level today at 175.65.
Though the stock is currently in a short-term downtrend, this might just be a correction, as both the medium and long-term trends are still bullish.
Selling could speed up should prices move below the nearby swing low at 175.02 where further sell stops might get activated. Further selling could move prices lower should the market test June's close-by low at 170.30.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bearish Break through SMA 200" stand out. While it is usually interpreted as bearish, it has actually shown to be bullish for Parker-Hannifin. Out of 50 times, PH closed higher 56.00% of the time on the next trading day after the market condition occurred.