PNR closes lower for the 6th day in a row
Pentair Ltd. (PNR) Technical Analysis Report for Oct 12, 2018
Moving lower for the 6th day in a row, PNR ended the week -8.73% lower at 39.00 after losing $0.20 (-0.51%) today, notably underperforming the S&P 500 (1.42%). Today's close at 39.00 marks the lowest recorded closing price since February 28, 2017. Closing below Thursday's low at 39.18, the share confirmed its breakout through the previous session low after trading up to $0.82 below it intraday.
Daily Candlestick Chart (PNR as at Oct 12, 2018):
Friday's trading range has been $1.52 (3.82%), that's far above the last trading month's daily average range of $0.91. Weekly volatility is also higher, being way above the market's average weekly trading range. The longer-term, monthly volatility is currently strongly higher than usual for PNR.
With another close below the lower Bollinger Band, prices are confirming their strong downward momentum in the short-term. A rally back into the Bollinger Band on the next trading day while could signal a potential change in momentum that might lead to a correction back up towards the center of the Bollinger Bands at 43.10.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
2017's low at 37.97 is within reach and we could see further downside momentum should the stock break out beyond.
Among the four market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Closed below last periods low" stand out. Although it is usually interpreted as bearish, it has actually shown to be bullish for Pentair Ltd.. Out of 407 times, PNR closed higher 50.12% 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 56.51% with an average market move of 0.52%.