PRAH pops to highest close since April 29th
PRA Health Sciences Inc. (PRAH) Technical Analysis Report for May 22, 2020 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, PRAH finished the week 5.95% higher at 97.46 after gaining $0.77 (0.8%) today on low volume, outperforming the S&P 500 (0.24%) ahead of tomorrow's Memorial Day market holiday. Today's close at 97.46 marks the highest recorded closing price since April 29th. Trading up to $1.42 lower after the open, the market managed to reverse during the session as bulls took control ending the day above its opening price. The last time this happened on May 13th, PRAH gained 0.95% on the following trading day. Closing within the previous day's range, prices missed to decisively move beyond the prior day's trading range in a lackluster session.
Daily Candlestick Chart (PRAH as at May 22, 2020):
Friday's trading range has been $1.73 (1.78%), that's far below the last trading month's daily average range of $3.57. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for PRAH.
One bearish candlestick pattern matches today's price action, the Hanging Man.
After having been unable to move lower than 95.67 in the previous session, the stock found buyers again around the same price level today at 95.76.
Although still in a long-term downtrend, the short and medium-term trends both turned bullish already.
Trading close to March's high at 103.94 we might see further upside momentum if potential buy stops at the level get triggered.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Hanging Man" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for PRA Health. Out of 47 times, PRAH closed higher 57.45% 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 three trading days, showing a win rate of 59.57% with an average market move of 0.22%.