PH breaks back above 50-day moving average
Parker-Hannifin Corporation (PH) Technical Analysis Report for Aug 05, 2020 | by Techniquant Editorial Team
PH finished Wednesday at 185.61 surging $4.35 (2.4%), strongly outperforming the S&P 500 (0.64%) ahead of Thursday's earnings report. This is the biggest single-day gain in over three weeks.
Daily Candlestick Chart (PH as at Aug 05, 2020):
PH is set to report earnings before tomorrow's market open. For the upcoming report, analysts expect the company to have earned $1.48 per share. The company's last earnings report was released on April 30, 2020, when Parker-Hannifin Corporation reported earnings of $2.92 per share beating market expectations by 30.4%.
Wednesday's trading range has been $3.90 (2.13%), that's slightly below the last trading month's daily average range of $4.29. 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.
Two candlestick patterns are matching today's price action, the White Candle which is known as bullish pattern and one bearish pattern, the Bearish Hikkake Pattern. The last time a White Candle showed up on July 27th, PH actually lost -2.84% on the following trading day.
Parker-Hannifin managed to close back above the 50-day moving average at 183.32 for the first time since July 29th.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Further buying might move prices higher should the market test July's close-by high at 189.00.
Among the nine market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bearish Hikkake Pattern" stand out. While it is usually interpreted as bearish, it has actually shown to be bullish for Parker-Hannifin. Out of 125 times, PH closed higher 52.80% 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 57.60% with an average market move of 0.67%.