PH finds buyers at key support level
Parker-Hannifin Corporation (PH) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team
PH ended Wednesday at 214.33 gaining $4.40 (2.1%), strongly outperforming the S&P 500 (-0.46%). Closing above Tuesday's high at 214.25, the stock confirmed its breakout through the prior session high after trading up to $3.34 above it intraday.
Daily Candlestick Chart (PH as at Sep 16, 2020):
Wednesday's trading range has been $6.49 (3.06%), that's above the last trading month's daily average range of $4.65. Weekly volatility is also higher, being above the market's average weekly trading range. The longer-term, monthly volatility is currently lower than usual for PH.
After trading down to 211.10 earlier during the day, the share bounced off the key technical support level at 211.24 (S1). The failure to close below the support might increase that levels significance as support going forward. When prices bounced off a significant support level the last time on September 10th, PH gained 2.36% on the following trading day.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Among the four market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Closed above last periods high" stand out. Its common bullish interpretation has been confirmed for Parker-Hannifin. Out of 426 times, PH closed higher 50.23% 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 55.87% with an average market move of 0.46%.