PNFP finds buyers again around 36.49
Pinnacle Financial Partners Inc. (PNFP) Technical Analysis Report for May 22, 2020 | by Techniquant Editorial Team
PNFP ended the week 7.11% higher at 36.90 after edging lower $0.42 (-1.13%) today on low volume, significantly 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 (PNFP as at May 22, 2020):
Friday's trading range has been $1.24 (3.3%), that's far below the last trading month's daily average range of $1.96. 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 PNFP. Prices continued to consolidate within a tight trading range between 34.87 and 37.82 where it has been caught now for the whole last trading week.
Two candlestick patterns are matching today's price action, the Bearish Short Candle and the Black Candle which are both known as bearish patterns.
Pinnacle Financial closed back below the 20-day moving average at 37.23. After having been unable to move lower than 36.57 in the previous session, the stock found buyers again around the same price level today at 36.49. The last time this happened on May 11th, PNFP actually lost -6.42% on the following trading day.
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 close-by swing high at 37.82 where further buy stops could get activated. Selling might accelerate should prices move below the nearby swing low at 34.87 where further sell stops could get triggered. As prices are trading close to May's high at 40.07, upside momentum might speed up should the market mark new highs for the month.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Close to Swing Low" stand out. Though it is usually interpreted as neutral, it has actually shown to be bullish for Pinnacle Financial. Out of 663 times, PNFP closed higher 51.28% 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 58.52% with an average market move of 1.18%.