PLT closes within previous day's range after lackluster session
Plantronics Inc. (PLT) Technical Analysis Report for Feb 14, 2020 | by Techniquant Editorial Team
Moving lower for the 4th day in a row, PLT finished the week -1.93% lower at 14.75 after losing $0.02 (-0.14%) today, slightly underperforming the S&P 500 (0.18%) ahead of tomorrow's Presidents' Day market holiday. Today's close at 14.75 marks the lowest recorded closing price since May 5, 2009. Closing within the previous day's range, prices missed to decisively move beyond the prior day's trading range in a lackluster session.
Daily Candlestick Chart (PLT as at Feb 14, 2020):
Friday's trading range has been $0.35 (2.37%), that's far below the last trading month's daily average range of $1.23. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently significantly higher than usual for PLT. Prices continued to consolidate within a tight trading range between 14.26 and 15.09 where it has been caught now for the last three trading days.
Two candlestick patterns are matching today's price action, the Southern Doji which is known as bullish pattern and one neutral pattern, the Doji. The last time a Southern Doji showed up on October 3, 2019, PLT gained 2.00% on the following trading day.
Prices are trading close to the key technical support level at 14.47 (S1). After having been unable to move above 14.86 in the previous session, the stock ran into sellers again around the same price level today, missing to move higher than 14.95.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Buying might speed up should prices move above the nearby swing high at 15.99 where further buy stops could get triggered. Selling might accelerate should prices move below the close-by swing low at 14.26 where further sell stops could get activated.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Close to Swing High" stand out. Although it is usually interpreted as neutral, it has actually shown to be bullish for Plantronics. Out of 752 times, PLT closed higher 52.93% 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 55.45% with an average market move of 0.50%.