PRGO closes within previous day's range
Perrigo (PRGO) Technical Analysis Report for Oct 12, 2018
PRGO finished the week -2.43% lower at 70.16 after gaining $0.37 (0.53%) today, underperforming the S&P 500 (1.42%). Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (PRGO as at Oct 12, 2018):
Friday's trading range has been $1.64 (2.32%), that's slightly below the last trading month's daily average range of $1.81. Things look different on the weekly timeframe, where the market's trading range of the last week has been way above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for PRGO.
Two candlestick patterns are matching today's price action, the Hammer and the Homing Pigeon which are both known as bullish patterns. The last time a Homing Pigeon showed up on April 23rd, PRGO actually lost -1.73% on the following trading day.
Prices are trading close to the key technical resistance level at 70.31 (R1). After having been unable to move lower than 69.41 in the previous session, the share found buyers again around the same price level today at 69.06.
Crossing above the lower Bollinger Band, prices have lost at least some of their downward momentum in the short-term and might now be heading back up towards the mean of the Bollinger Bands at 72.04.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Selling could speed up should prices move below the close-by swing low at 68.30 where further sell stops might get activated. With prices trading close to this year's low at 67.53, downside momentum could accelerate should the market break out to new lows for the year.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Hammer" stand out. Its common bullish interpretation has been confirmed for Perrigo. Out of 24 times, PRGO closed higher 66.67% 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 62.50% with an average market move of 1.32%.