PM closes within prior day's range after lackluster session
Philip Morris International Inc (PM) Technical Analysis Report for May 22, 2020 | by Techniquant Editorial Team
PM finished the week 3.94% higher at 70.45 after edging lower $0.05 (-0.07%) today on low volume, slightly underperforming the S&P 500 (0.24%) ahead of tomorrow's Memorial Day market holiday. 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 (PM as at May 22, 2020):
Friday's trading range has been $1.13 (1.6%), that's far below the last trading month's daily average range of $1.97. 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 PM.
Three candlestick patterns are matching today's price action, the Hanging Man and the Northern Doji which are both known as bearish patterns and one neutral pattern, the Doji. The last time a Doji showed up on February 20th, PM gained 2.52% on the following trading day.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Buying could accelerate should prices move above the nearby swing high at 71.69 where further buy stops might get activated.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Doji" stand out. While it is usually interpreted as neutral, it has actually shown to be bullish for Philip Morris. Out of 109 times, PM closed higher 58.72% 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 57.80% with an average market move of 0.68%.