PRGO finds buyers at key support level
Perrigo Company plc (PRGO) Technical Analysis Report for Jun 30, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, PRGO ended the month 0.91% higher at 55.27 after gaining $0.71 (1.3%) today, slightly underperforming the S&P 500 (1.54%). Today's close at 55.27 marks the highest recorded closing price since June 9th. Closing above Monday's high at 54.87, the stock confirmed its breakout through the prior session high after trading up to $0.69 above it intraday.
Daily Candlestick Chart (PRGO as at Jun 30, 2020):
Tuesday's trading range has been $1.55 (2.85%), that's slightly below the last trading month's daily average range of $1.77. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for PRGO.
Two candlestick patterns are matching today's price action, the White Candle which is known as bullish pattern and one bearish pattern, the Last Engulfing Top Pattern. The last time a White Candle showed up on June 25th, PRGO actually lost -1.44% on the following trading day.
After trading down to 54.01 earlier during the day, the share bounced off the key technical support level at 54.23 (S1). The failure to close below the support might increase that levels importance as support going forward. Prices are trading close to the key technical resistance level at 56.26 (R1). After having been unable to move lower than 53.89 in the previous session, Perrigo found buyers again around the same price level today at 54.01.
Although still in a long-term downtrend, the short and medium-term trends both turned bullish already.
Among the nine market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bounced off Technical Support S1" stand out. Its common bullish interpretation has been confirmed for Perrigo. Out of 455 times, PRGO closed higher 57.58% 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 52.09% with an average market move of -0.02%.