PM closes within previous day's range after lackluster session
Philip Morris International Inc (PM) Technical Analysis Report for Jun 30, 2020 | by Techniquant Editorial Team
PM finished the month -4.5% lower at 70.06 after losing $0.45 (-0.64%) today on low volume, significantly underperforming the S&P 500 (1.54%). Trading up to $0.61 lower after the open, the share managed to reverse during the session as bulls took control ending the day above its opening price. The last time this happened on June 25th, PM actually lost -2.55% on the following trading day. 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 Jun 30, 2020):
Tuesday's trading range has been $1.02 (1.46%), that's far below the last trading month's daily average range of $1.75. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for PM.
During the whole day, prices traded within the previous day's range, unable to trade above the prior day's high or below the previous day's low forming an Inside Bar. Additionally, 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 stock was sold again around 70.45 after having seen highs at 70.62, 70.62 and 70.72 in the last three trading sessions. Obviously there is something going on at that level.
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 68.37 where further sell stops could get activated. Further selling might move prices lower should the market test May's nearby low at 66.85.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Southern Doji" stand out. Its common bullish interpretation has been confirmed for Philip Morris. Out of 35 times, PM closed higher 68.57% 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 60.00% with an average market move of 1.48%.