PKI dominated by bears dragging the market lower throughout the day
PerkinElmer Inc. (PKI) Technical Analysis Report for Feb 14, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, PKI finished the week 2.68% higher at 95.56 after losing $0.43 (-0.45%) today, underperforming the S&P 500 (0.18%) ahead of tomorrow's Presidents' Day market holiday. The bears were in full control today, moving the market lower throughout the whole session. Closing within the prior day's range, prices missed to decisively move beyond the previous day's trading range in a lackluster session.
Daily Candlestick Chart (PKI as at Feb 14, 2020):
Friday's trading range has been $0.84 (0.87%), that's far below the last trading month's daily average range of $1.92. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for PKI.
During the whole day, prices traded within the prior day's range, unable to trade above the previous day's high or below the prior day's low forming an Inside Bar. Notwithstanding a strong opening the stock closed below the previous day's open and close, forming a bearish Engulfing Candle. Additionally, two candlestick patterns are matching today's price action, the Bearish Short Candle and the Black Candle which are both known as bearish patterns.
Prices are trading close to the key technical support level at 94.77 (S1). After having been unable to move above 96.48 in the prior session, PerkinElmer ran into sellers again around the same price level today, missing to move higher than 96.25. The last time this happened on February 6th, PKI lost -2.65% on the following trading day.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Buying could speed up should prices move above the close-by swing high at 97.24 where further buy stops might get triggered. Selling could accelerate should prices move below the nearby swing low at 94.93 where further sell stops might get activated. With prices trading close to this year's low at 91.95, downside momentum could speed up should the market break out to new lows for the year.
Among the 10 market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bearish Short Candle" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for PerkinElmer. Out of 61 times, PKI closed higher 67.21% 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 59.02% with an average market move of 0.96%.