POOL stuck within tight trading range
Pool Corporation (POOL) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team
POOL ended Thursday at 185.00 gaining $9.96 (5.69%), underperforming the S&P 500 (6.24%). The bulls were in full control today, moving the market higher throughout the whole session. Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (POOL as at Mar 26, 2020):
Thursday's trading range has been $14.91 (8.73%), that's slightly above the last trading month's daily average range of $14.70. Weekly volatility is also higher, being slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently notably higher than usual for POOL. Prices continued to consolidate within a tight trading range between 169.11 and 185.89 where it has been caught now for the last three trading days.
During the whole day, prices traded within the previous day's range, unable to trade above the prior day's high or below the previous day's low forming an Inside Bar. In spite of a weak opening the market managed to close above the prior day's open and close, forming a bullish Engulfing Candle. The last time this candlestick pattern showed up on March 18th, POOL gained 3.44% on the following trading day. Additionally, two candlestick patterns are matching today's price action, the Bullish Belt-hold and the White Candle which are both known as bullish patterns.
Prices are trading close to the key technical resistance level at 185.89 (R1). The stock ran into sellers again today around 185.71 for the third trading day in a row after having found sellers at 185.89 in the previous session and at 184.45 two days ago.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Buying could accelerate should prices move above the close-by swing high at 185.89 where further buy stops might get triggered.
Among the 10 market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bullish Engulfing Candle" stand out. Its common bullish interpretation has been confirmed for Pool. Out of 73 times, POOL closed higher 60.27% 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 64.38% with an average market move of 0.93%.