PPC closes below its opening price unable to hold early session gains
Pilgrim's Pride Corporation (PPC) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team
PPC ended Wednesday at 17.01 losing $0.04 (-0.23%), but still slightly outperforming the S&P 500 (-0.46%). Trading $0.16 higher after the open, Pilgrim's Pride was unable to hold its gains as the bears took control ending the day below its opening price. Closing within the prior day's range, prices missed to decisively move beyond the previous day's trading range in a lackluster session.
Daily Candlestick Chart (PPC as at Sep 16, 2020):
Wednesday's trading range has been $0.35 (2.04%), that's below the last trading month's daily average range of $0.45. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for PPC.
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. In spite of a strong opening the share closed below the previous day's open and close, forming a bearish Engulfing Candle.
Prices are trading close to the key technical support level at 16.70 (S1). After having been unable to move above 17.33 in the prior session, the market ran into sellers again around the same price level today, missing to move higher than 17.30.
Crossing below the upper Bollinger Band, prices have lost at least some of their upward momentum in the short-term and might now be heading back down towards the mean of the Bollinger Bands at 16.27. The last time this happened on September 11th, PPC actually gained 3.16% on the following trading day.
While still in a long-term downtrend, the short and medium-term trends both turned bullish already.
Buying could speed up should prices move above the close-by swing high at 17.33 where further buy stops might get triggered.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Bearish Intraday Reversal" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for Pilgrim's Pride. Out of 398 times, PPC closed higher 53.52% 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 56.28% with an average market move of 0.87%.