PRGO closes lower for the 4th day in a row
Perrigo Company plc (PRGO) Technical Analysis Report for Feb 14, 2020 | by Techniquant Editorial Team
Moving lower for the 4th day in a row, PRGO ended the week -3.67% lower at 57.71 after losing $0.25 (-0.43%) today, underperforming the S&P 500 (0.18%) ahead of tomorrow's Presidents' Day market holiday. Closing below Thursday's low at 57.89, the share confirmed its breakout through the previous session low after trading up to $0.81 below it intraday.
Daily Candlestick Chart (PRGO as at Feb 14, 2020):
Friday's trading range has been $1.13 (1.94%), that's slightly below the last trading month's daily average range of $1.17. 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 strongly lower than usual for PRGO.
Prices broke below the key technical support level at 57.78 (now R1), which is likely to act as resistance going forward. The last time this happened on January 24th, PRGO lost -0.17% on the following trading day.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Among the three market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "4 Consecutive Lower Closes" stand out. While it is usually interpreted as bearish, it has actually shown to be bullish for Perrigo. Out of 67 times, PRGO closed higher 52.24% 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 58.21% with an average market move of -0.17%.