PRGO closes lower for the 2nd day in a row
Perrigo Company plc (PRGO) Technical Analysis Report for May 22, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, PRGO ended the week 2.88% higher at 54.28 after edging lower $0.05 (-0.09%) today on low volume, slightly underperforming the S&P 500 (0.24%) ahead of tomorrow's Memorial Day market holiday. Closing within the prior day's range, prices missed to decisively move beyond the previous day's trading range in a lackluster session.
Daily Candlestick Chart (PRGO as at May 22, 2020):
Friday's trading range has been $0.73 (1.34%), that's far below the last trading month's daily average range of $1.45. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently lower than usual for PRGO.
One bearish candlestick pattern matches today's price action, the Bearish Spinning Top. The last time a Bearish Spinning Top showed up on May 1st, PRGO lost -2.68% on the following trading day.
After trading down to 53.85 earlier during the day, the market bounced off the key technical support level at 53.96 (S1). The failure to close below the support might increase that levels significance as support going forward.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Buying could accelerate should prices move above the close-by swing high at 56.17 where further buy stops might get triggered. Trading close to March's high at 56.27 we could see further upside momentum if potential buy stops at the level get activated.
Among the four market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bearish Spinning Top" stand out. While it is usually interpreted as bearish, it has actually shown to be bullish for Perrigo. Out of 237 times, PRGO closed higher 53.16% 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 60.76% with an average market move of 0.45%.