PRGO pushes through key technical resistance level
Perrigo Company plc (PRGO) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team
PRGO ended Thursday at 46.54 gaining $1.79 (4.0%), strongly underperforming the S&P 500 (6.24%). Closing above Wednesday's high at 46.42, the stock confirmed its breakout through the previous session high after trading up to $0.68 above it intraday.
Daily Candlestick Chart (PRGO as at Mar 26, 2020):
Thursday's trading range has been $2.10 (4.64%), that's below the last trading month's daily average range of $3.62. Weekly volatility is also lower, being way below the market's average weekly trading range. The longer-term, monthly volatility is currently lower than usual for PRGO.
Two candlestick patterns are matching today's price action, the Bullish Short Candle and the White Candle which are both known as bullish patterns.
Buyers managed to take out the key technical resistance level at 46.43 (now S1), which is likely to act as support going forward. The last time this happened on March 17th, PRGO actually lost -9.03% on the following trading day. Prices are trading close to the key technical resistance level at 49.43 (R1).
Though Perrigo is experiencing a short-term uptrend, this could just be a correction, as both the medium and long-term trends are still bearish.
Selling might speed up should prices move below the nearby swing low at 43.29 where further sell stops could get triggered. With prices trading close to this year's low at 40.17, downside momentum might 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 "Bullish Short Candle" stand out. Its common bullish interpretation has been confirmed for Perrigo. Out of 63 times, PRGO closed higher 58.73% of the time on the next trading day after the market condition occurred.