PKI breaks above 20-day moving average for the first time since January 24th
PerkinElmer Inc. (PKI) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, PKI ended Thursday at 79.01 gaining $4.01 (5.35%) on high volume, underperforming the S&P 500 (6.24%). Closing above Wednesday's high at 79.00, the stock confirmed its breakout through the previous session high after trading up to $1.32 above it intraday.
Daily Candlestick Chart (PKI as at Mar 26, 2020):
Thursday's trading range has been $6.41 (8.45%), that's above the last trading month's daily average range of $5.12. Weekly volatility is also higher, being way above the market's average weekly trading range. The longer-term, monthly volatility is currently higher than usual for PKI.
In a volatile session, prices traded above the prior day's high as well as below the previous day's low, forming a bullish Outside Bar.
The share managed to close above the 20-day moving average at 76.26 for the first time since January 24th. After having been unable to move lower than 74.20 in the prior session, the market found buyers again around the same price level today at 73.91. The last time this happened on March 19th, PKI gained 5.77% on the following trading day.
Though PerkinElmer 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 five market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bullish Outside Bar" stand out. Its common bullish interpretation has been confirmed for PerkinElmer. Out of 110 times, PKI closed higher 56.36% 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 61.82% with an average market move of 1.36%.