PNR breaks back above 20-day moving average
Pentair plc. (PNR) Technical Analysis Report for Mar 15, 2019 | by Techniquant Editorial Team
PNR finished the week 2.35% higher at 42.62 after edging higher $0.06 (0.14%) today, slightly underperforming the S&P 500 (0.5%). 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 (PNR as at Mar 15, 2019):
Friday's trading range has been $0.35 (0.82%), that's below the last trading month's daily average range of $0.56. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for PNR. Prices continued to consolidate within a tight trading range between 42.43 and 42.94 where it has been caught now for the last three trading days.
Two candlestick patterns are matching today's price action, the Bullish Spinning Top which is known as bullish pattern and one bearish pattern, the Shooting Star. The last time a Shooting Star showed up on November 16, 2018, PNR lost -0.71% on the following trading day.
The share managed to close back above the 20-day moving average at 42.62.
Though Pentair plc. is currently in a short-term downtrend, this could just be a correction, as both the medium and long-term trends are still bullish.
Buying might accelerate should prices move above the close-by swing high at 42.94 where further buy stops could get triggered. Selling might speed up should prices move below the nearby swing low at 42.43 where further sell stops could get activated. With prices trading close to this year's high at 43.64, upside momentum might accelerate should the stock be able to break out to new highs for the year. As prices are trading close to March's high at 43.10, upside momentum could speed up should the market mark new highs for the month.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Shooting Star" stand out. Its common bearish interpretation has been confirmed for Pentair plc.. Out of 55 times, PNR closed lower 60.00% 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 10 trading days, showing a win rate of 58.18% with an average market move of -0.75%.