PRAH dominated by bears dragging the market lower throughout the day
PRA Health Sciences Inc. (PRAH) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team
PRAH finished Wednesday at 103.72 losing $2.86 (-2.68%), significantly underperforming the S&P 500 (-0.46%). The bears were in full control today, moving the market lower throughout the whole session. Closing below Tuesday's low at 106.43, the market confirmed its breakout through the previous session low after trading up to $2.82 below it intraday.
Daily Candlestick Chart (PRAH as at Sep 16, 2020):
Wednesday's trading range has been $4.31 (4.01%), that's above the last trading month's daily average range of $2.99. Weekly volatility is also higher, being slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for PRAH.
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. The last time this happened on August 11th, PRAH actually gained 3.47% on the following trading day. In spite of a strong opening PRA Health 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.
Prices are trading close to the key technical support level at 101.66 (S1). Prices broke below the key technical support level at 106.31 (now R1), which is likely to act as resistance going forward. After having been unable to move above 107.86 in the previous session, the share ran into sellers again around the same price level today, failing to move higher than 107.92.
Though the stock is currently in a short-term downtrend, this might just be a correction, as both the medium and long-term trends are still bullish.
As prices are trading close to September's high at 108.03, upside momentum could speed up should PRAH mark new highs for the month.
Among the nine market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Closed below last periods low" stand out. While it is usually interpreted as bearish, it has actually shown to be bullish for PRA Health. Out of 205 times, PRAH closed higher 56.10% 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 60.98% with an average market move of 1.83%.