PM dominated by bulls lifting the market higher throughout the day
Philip Morris International Inc (PM) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, PM finished Thursday at 71.16 gaining $5.09 (7.7%), notably outperforming the S&P 500 (6.24%). The bulls were in full control today, moving the market higher throughout the whole session. Closing above Wednesday's high at 68.58, the market confirmed its breakout through the prior session high after trading up to $3.46 above it intraday.
Daily Candlestick Chart (PM as at Mar 26, 2020):
Thursday's trading range has been $6.06 (9.16%), that's slightly above the last trading month's daily average range of $5.51. Weekly volatility is also higher, being slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently strongly higher than usual for PM.
One bullish candlestick pattern matches today's price action, the White Candle.
Buyers managed to take out the key technical resistance level at 68.41 (now S1), which is likely to act as support going forward. The last time this happened on March 13th, PM actually lost -12.45% on the following trading day.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Buying could speed up should prices move above the nearby swing high at 75.13 where further buy stops might get triggered.
Among the nine market conditions that our pattern recognition engine identified today, the statistics for the Technical Indicators based market condition "RSI(2) above 80" stand out. Although it is usually interpreted as bearish, it has actually shown to be bullish for Philip Morris. Out of 291 times, PM closed higher 57.73% 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 six trading days, showing a win rate of 53.61% with an average market move of 0.06%.