PKI closes above its opening price after recovering from early selling pressure
PerkinElmer Inc. (PKI) Technical Analysis Report for May 22, 2020 | by Techniquant Editorial Team
PKI finished the week 0.59% higher at 93.41 after gaining $0.91 (0.98%) today on low volume, outperforming the S&P 500 (0.24%) ahead of tomorrow's Memorial Day market holiday. Today's close at 93.41 marks the highest recorded closing price since February 19th. Trading up to $0.61 lower after the open, the market managed to reverse during the session as bulls took control ending the day above its opening price. The last time this happened on Monday, PKI actually lost -2.16% on the following trading day. 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 May 22, 2020):
Friday's trading range has been $1.31 (1.41%), that's far below the last trading month's daily average range of $2.31. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently strongly lower than usual for PKI. Prices continued to consolidate within a tight trading range between 90.47 and 94.00 where it has been caught now for the whole last trading week.
Prices are trading close to the key technical support level at 91.95 (S1). The share ran into sellers again today around 93.65 for the third trading day in a row after having found sellers at 93.43 in the previous session and at 93.82 two days ago.
Though still in a long-term downtrend, the short and medium-term trends both turned bullish already.
Buying might accelerate should prices move above the close-by swing high at 93.76 where further buy stops could get activated. Selling might speed up should prices move below the nearby swing low at 91.87 where further sell stops could get triggered. As prices are trading close to May's high at 96.03, upside momentum might accelerate should the stock mark new highs for the month.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Close to Swing Low" stand out. Although it is usually interpreted as neutral, it has actually shown to be bullish for PerkinElmer. Out of 579 times, PKI closed higher 53.20% 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 61.31% with an average market move of 1.07%.