PNR pushes through key technical resistance level
Pentair plc. (PNR) Technical Analysis Report for Jul 16, 2019 | by Techniquant Editorial Team
Moving higher for the 4th day in a row, PNR finished Tuesday at 38.49 gaining $0.44 (1.16%), notably outperforming the S&P 500 (-0.34%). Today's close at 38.49 marks the highest recorded closing price since May 6th. The bulls were in full control today, moving the market higher throughout the whole session. Closing above Monday's high at 38.13, the stock confirmed its breakout through the prior session high after trading up to $0.44 above it intraday.
Daily Candlestick Chart (PNR as at Jul 16, 2019):
Tuesday's trading range has been $0.73 (1.92%), that's above the last trading month's daily average range of $0.62. Weekly volatility is also higher, being slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for PNR.
Two candlestick patterns are matching today's price action, the White Candle which is known as bullish pattern and one bearish pattern, the Last Engulfing Top Pattern. The last time a Last Engulfing Top Pattern showed up on April 8th, PNR lost -13.54% on the following trading day.
Buyers managed to take out the key technical resistance level at 38.37 (now S1), which is likely to act as support going forward.
Although the share is experiencing a short-term uptrend, this could just be a correction, as both the medium and long-term trends are still bearish.
Trading close to May's high at 39.50 we might see further upside momentum if potential buy stops at the level get triggered.
Among the eight market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Last Engulfing Top Pattern" stand out. While it is usually interpreted as bearish, it has actually shown to be bullish for Pentair plc.. Out of 57 times, PNR closed higher 63.16% 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 54.39% with an average market move of 0.41%.