PM dominated by bears dragging the market lower throughout the day
Philip Morris International Inc (PM) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, PM ended Wednesday at 80.60 losing $0.80 (-0.98%), underperforming the S&P 500 (-0.46%). The bears were in full control today, moving the market lower throughout the whole session. Closing below Tuesday's low at 81.37, the market confirmed its breakout through the prior session low after trading up to $0.83 below it intraday.
Daily Candlestick Chart (PM as at Sep 16, 2020):
Wednesday's trading range has been $1.70 (2.08%), that's slightly above the last trading month's daily average range of $1.50. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for PM.
Two candlestick patterns are matching today's price action, the Bullish Hikkake Pattern which is known as bullish pattern and one bearish pattern, the Black Candle. The last time a Bullish Hikkake Pattern showed up on September 1st, PM gained 1.19% on the following trading day.
Prices broke below the key technical support level at 81.22 (now R1), which is likely to act as resistance going forward.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Among the eight market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bullish Hikkake Pattern" stand out. Although it is usually interpreted as bullish, it has actually shown to be bearish for Philip Morris. Out of 109 times, PM closed lower 52.29% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the short side has been after two trading days, showing a win rate of 55.96% with an average market move of -0.11%.