PKI closes lower for the 2nd day in a row
PerkinElmer Inc. (PKI) Technical Analysis Report for Feb 21, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, PKI finished the week -2.84% lower at 92.85 after losing $0.45 (-0.48%) today, but still outperforming the S&P 500 (-1.05%). Trading up to $0.66 lower after the open, PerkinElmer managed to reverse during the session as bulls took control ending the day above its opening price. Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range in a lackluster session.
Daily Candlestick Chart (PKI as at Feb 21, 2020):
Friday's trading range has been $1.23 (1.33%), that's below the last trading month's daily average range of $1.97. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for PKI.
One bullish candlestick pattern matches today's price action, the Bullish Spinning Top.
After trading down to 92.12 earlier during the day, the market bounced off the key technical support level at 92.29 (S1). The failure to close below the support might increase that levels significance as support going forward. After having been unable to move lower than 92.36 in the previous session, the share found buyers again around the same price level today at 92.12. The last time this happened on February 10th, PKI gained 1.70% on the following trading day.
Although still in a long-term uptrend, the short and medium-term trends both turned bearish already.
With prices trading close to this year's low at 91.95, downside momentum could speed up should the stock break out to new lows for the year. Trading close to December's low at 90.30 we might see further downside momentum if potential sell stops at the level get activated.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bounced off Technical Support S1" stand out. Its common bullish interpretation has been confirmed for PerkinElmer. Out of 428 times, PKI closed higher 62.62% 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 57.48% with an average market move of 0.91%.