PHG closes below its opening price unable to hold early session gains
Koninklijke Philips N.V. NY Registry Shares (PHG) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team
PHG ended Wednesday at 46.94 losing $0.30 (-0.64%), slightly underperforming the S&P 500 (-0.46%). Trading $0.21 higher after the open, the market was unable to hold its gains as the bears took control ending the day below its opening price. Closing below Tuesday's low at 47.10, the share confirmed its breakout through the previous session low after trading up to $0.19 below it intraday.
Daily Candlestick Chart (PHG as at Sep 16, 2020):
Wednesday's trading range has been $0.54 (1.14%), that's below the last trading month's daily average range of $0.76. Weekly volatility is also lower, being way below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for PHG.
One bearish candlestick pattern matches today's price action, the Black Candle. The last time a Black Candle showed up on Monday, PHG actually gained 1.13% on the following trading day.
Unable to break through the key technical resistance level at 47.36 (R1), Koninklijke Philips closed below it after spiking up to 47.45 earlier during the day. The failure to close above the resistance could increase that levels importance going forward.
While still in a long-term uptrend, the short and medium-term trends both turned bearish already.
Buying might speed up should prices move above the close-by swing high at 47.65 where further buy stops could get activated. Selling might accelerate should prices move below the nearby swing low at 46.68 where further sell stops could get triggered. As prices are trading close to September's low at 45.66, downside momentum might speed up should the stock mark new lows for the month.
Among the eight market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Black Candle" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for Koninklijke Philips. Out of 525 times, PHG closed higher 56.95% 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 54.86% with an average market move of 0.41%.