PNR closes lower for the 2nd day in a row
Pentair plc. (PNR) Technical Analysis Report for Feb 14, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, PNR ended the week 1.37% higher at 44.24 after losing $0.40 (-0.9%) today, significantly underperforming the S&P 500 (0.18%) ahead of tomorrow's Presidents' Day market holiday. Closing below Thursday's low at 44.27, the stock confirmed its breakout through the previous session low after trading up to $0.23 below it intraday.
Daily Candlestick Chart (PNR as at Feb 14, 2020):
Friday's trading range has been $0.75 (1.68%), that's slightly below the last trading month's daily average range of $0.80. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for PNR.
In a volatile session, prices traded above the prior day's high as well as below the previous day's low, forming a bearish Outside Bar. Despite a strong opening the market closed below the prior day's open and close, forming a bearish Engulfing Candle. Additionally, one bearish candlestick pattern matches today's price action, the Black Candle.
After spiking up to 44.79 during the day, the share found resistance at the 20-day moving average at 44.76. Pentair plc. ran into sellers again today around 44.79 for the third trading day in a row after having found sellers at 44.67 in the previous session and at 44.76 two days ago. The last time this happened on January 15th, PNR actually gained 1.90% on the following trading day.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
With prices trading close to this year's low at 42.77, downside momentum might speed up should PNR break out to new lows for the year.
Among the eight market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Price broke through Technical Support S1" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for Pentair plc.. Out of 266 times, PNR closed higher 56.39% 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 58.65% with an average market move of 0.84%.