POOL rises to highest close ever
Pool Corporation (POOL) Technical Analysis Report for Feb 14, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, POOL finished the week 2.93% higher at 233.55 after surging $5.41 (2.37%) today on high volume, notably outperforming the S&P 500 (0.18%). This is the biggest single-day gain in over four months. Today's close at 233.55 marks the highest recorded closing price ever. The bulls were in full control today, moving the market higher throughout the whole session. Closing within the prior day's range, prices failed to decisively move beyond the previous day's trading range.
Daily Candlestick Chart (POOL as at Feb 14, 2020):
Friday's trading range has been $7.58 (3.32%), that's far above the last trading month's daily average range of $4.30. Weekly volatility is also higher, being way above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for POOL.
During the whole day, prices traded within the prior day's range, unable to trade above the previous day's high or below the prior day's low forming an Inside Bar. Additionally, one bullish candlestick pattern matches today's price action, the White Candle.
Prices are trading close to the key technical resistance level at 233.93 (R1). After having been unable to move above 233.93 in the previous session, the stock ran into sellers again around the same price level today, missing to move higher than 233.81.
Crossing above the upper Bollinger Band for the first time since Tuesday, prices have shown unusually strong upward momentum in the short-term. This might either indicate a potential buying climax after which prices could head back down towards the mean of the Bollinger Bands at 223.91 or signal the beginning of a strong momentum breakout leading to even higher prices. The last time prices broke out above the upper Bollinger Band on Tuesday, POOL actually lost -0.92% on the following trading day.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Buying might accelerate should prices move above the nearby swing high at 233.93 where further buy stops could get triggered.
Among the 13 market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "2 Consecutive Higher Closes" stand out. Its common bullish interpretation has been confirmed for Pool. Out of 321 times, POOL closed higher 54.83% 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 59.81% with an average market move of 0.83%.