PLCE dominated by bears dragging the market lower throughout the day
Children's Place Inc. (PLCE) Technical Analysis Report for Mar 15, 2019 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, PLCE finished the week -0.95% lower at 88.44 after losing $2.76 (-3.03%) today, strongly underperforming the S&P 500 (0.5%). The bears were in full control today, moving the market lower throughout the whole session. Closing below Thursday's low at 90.96, Children's Place confirmed its breakout through the prior session low after trading up to $2.91 below it intraday.
Daily Candlestick Chart (PLCE as at Mar 15, 2019):
Friday's trading range has been $3.15 (3.45%), that's slightly below the last trading month's daily average range of $3.21. 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 PLCE.
One bearish candlestick pattern matches today's price action, the Black Candle.
Prices broke below the key technical support level at 90.40 (now R1), which is likely to act as resistance going forward.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Selling might speed up should prices move below the close-by swing low at 87.38 where further sell stops could get activated. With prices trading close to this year's low at 82.05, downside momentum might accelerate should the stock break out to new lows for the year.
Among the nine market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "2 Consecutive Lower Closes" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for Children's Place. Out of 305 times, PLCE closed higher 53.11% 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 54.43% with an average market move of 1.11%.