PKI dominated by bears dragging the market lower throughout the day
PerkinElmer Inc. (PKI) Technical Analysis Report for Apr 16, 2019 | by Techniquant Editorial Team
Moving lower for the 5th day in a row, PKI ended Tuesday at 96.98 tanking $2.21 (-2.23%), strongly underperforming the S&P 500 (0.05%). This is the biggest single-day loss in over three weeks. The bears were in full control today, moving the market lower throughout the whole session. Closing below Monday's low at 98.84, PerkinElmer confirmed its breakout through the previous session low after trading up to $2.46 below it intraday.
Daily Candlestick Chart (PKI as at Apr 16, 2019):
Tuesday's trading range has been $3.71 (3.71%), that's far above the last trading month's daily average range of $1.88. Weekly volatility is also higher, being above the market's average weekly trading range. The longer-term, monthly volatility is currently higher than usual for PKI.
Two candlestick patterns are matching today's price action, the Black Candle and the Three Black Crows which are both known as bearish patterns.
The share closed below the 20-day moving average at 97.58 for the first time since March 27th. When this moving average was crossed below the last time on March 27th, PKI actually gained 0.95% on the following trading day.
Although the market is currently in a short-term downtrend, this could just be a correction, as both the medium and long-term trends are still bullish.
Among the 10 market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Three Black Crows" stand out. Its common bearish interpretation has been confirmed for PerkinElmer. Out of 1 times, PKI closed lower 100.00% 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 100.00% with an average market move of -0.88%.