PKI pushes through key technical resistance level
PerkinElmer Inc. (PKI) Technical Analysis Report for Jun 30, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, PKI ended the month -2.37% lower at 98.09 after gaining $2.36 (2.47%) today on high volume, outperforming the S&P 500 (1.54%). The bulls were in full control today, moving the market higher throughout the whole session. Closing above Monday's high at 96.20, the share confirmed its breakout through the previous session high after trading up to $2.31 above it intraday.
Daily Candlestick Chart (PKI as at Jun 30, 2020):
Tuesday's trading range has been $3.44 (3.6%), that's above the last trading month's daily average range of $2.63. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for PKI.
Two candlestick patterns are matching today's price action, the White Candle which is known as bullish pattern and one bearish pattern, the Bearish Hikkake Pattern.
Buyers managed to take out the key technical resistance level at 96.63 (now S1), which is likely to act as support going forward. The last time this happened on May 26th, PKI gained 2.61% on the following trading day.
Although the market is currently in a short-term downtrend, this might just be a correction, as both the medium and long-term trends are still bullish.
Among the nine market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "2 Consecutive Higher Closes" stand out. Its common bullish interpretation has been confirmed for PerkinElmer. Out of 310 times, PKI closed higher 61.29% 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 60.97% with an average market move of 0.80%.