PK ends the day indecisive
Park Hotels & Resorts Inc. (PK) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team
Moving higher for the 6th day in a row, PK finished Thursday at 9.93 gaining $0.97 (10.83%) on high volume, notably outperforming the S&P 500 (6.24%). Ending the day with an indecisive close, neither buyers nor sellers were able to gain control during the session.
Daily Candlestick Chart (PK as at Mar 26, 2020):
Thursday's trading range has been $2.60 (27.2%), that's far above the last trading month's daily average range of $1.65. Weekly volatility is also higher, being slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently higher than usual for PK.
One bearish candlestick pattern matches today's price action, the Shooting Star. The last time a Shooting Star showed up on February 12th, PK lost -1.46% on the following trading day.
After spiking up to 12.02 during the day, Park Hotels found resistance at the 20-day moving average at 11.38.
Although the market is experiencing a short-term uptrend, this might just be a correction, as both the medium and long-term trends are still bearish.
Among the four market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "6 Consecutive Higher Closes" stand out. Though it is usually interpreted as bullish, it has actually shown to be bearish for Park Hotels. Out of 7 times, PK closed lower 71.43% 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 10 trading days, showing a win rate of 71.43% with an average market move of -1.56%.