PHM closes above its opening price after recovering from early selling pressure
PulteGroup Inc. (PHM) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, PHM ended Thursday at 25.71 gaining $1.49 (6.15%), slightly underperforming the S&P 500 (6.24%). Trading up to $0.60 lower after the open, the market managed to reverse during the session as bulls took control ending the day above its opening price. The last time this happened on March 10th, PHM actually lost -10.83% on the following trading day. Closing above Wednesday's high at 25.20, the share confirmed its breakout through the prior session high after trading up to $0.65 above it intraday.
Daily Candlestick Chart (PHM as at Mar 26, 2020):
Thursday's trading range has been $1.73 (7.0%), that's far below the last trading month's daily average range of $2.75. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently strongly higher than usual for PHM.
Two candlestick patterns are matching today's price action, the Bullish Short Candle and the White Candle which are both known as bullish patterns.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bullish Short Candle" stand out. Its common bullish interpretation has been confirmed for PulteGroup. Out of 65 times, PHM closed higher 53.85% 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 56.92% with an average market move of 1.58%.