PK closes below its opening price unable to hold early session gains
Park Hotels & Resorts Inc. (PK) Technical Analysis Report for Feb 14, 2020 | by Techniquant Editorial Team
PK ended the week 1.24% higher at 23.63 after edging higher $0.01 (0.04%) today, slightly underperforming the S&P 500 (0.18%) ahead of tomorrow's Presidents' Day market holiday. Trading $0.09 higher after the open, the stock was unable to hold its gains as the bears took control ending the day below its opening price. Closing within the prior day's range, prices failed to decisively move beyond the previous day's trading range in a lackluster session.
Daily Candlestick Chart (PK as at Feb 14, 2020):
Friday's trading range has been $0.26 (1.1%), that's below the last trading month's daily average range of $0.45. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for PK.
One bearish candlestick pattern matches today's price action, the Bearish Spinning Top. The last time a Bearish Spinning Top showed up on Wednesday, PK lost -1.46% on the following trading day.
Although the market is experiencing a short-term uptrend, this could just be a correction, as both the medium and long-term trends are still bearish.
Selling might accelerate should prices move below the nearby swing low at 23.17 where further sell stops could get triggered.
Among the three market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Bearish Intraday Reversal" stand out. Its common bearish interpretation has been confirmed for Park Hotels. Out of 132 times, PK closed lower 52.27% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the short side has been after seven trading days, showing a win rate of 49.24% with an average market move of -0.03%.