PRGO finds buyers again around 55.45
Perrigo Company plc (PRGO) Technical Analysis Report for Jul 14, 2020 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, PRGO finished Tuesday at 56.25 gaining $0.72 (1.3%), slightly underperforming the S&P 500 (1.34%). Today's close at 56.25 marks the highest recorded closing price since June 8th. 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 Jul 14, 2020):
Tuesday's trading range has been $0.87 (1.56%), that's far below the last trading month's daily average range of $1.27. 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.
During the whole day, prices traded within the prior day's range, unable to trade above the previous day's high or below the prior day's low forming an Inside Bar. Additionally, two candlestick patterns are matching today's price action, the Bullish Short Candle and the White Candle which are both known as bullish patterns.
Prices are trading close to the key technical resistance level at 56.68 (R1). After having been unable to move lower than 55.30 in the previous session, the share found buyers again around the same price level today at 55.45.
Crossing above the upper Bollinger Band for the first time since June 8th, prices have shown unusually strong upward momentum in the short-term. This might either indicate a potential buying climax after which prices could head back down towards the mean of the Bollinger Bands at 54.81 or signal the beginning of a strong momentum breakout leading to even higher prices. The last time prices broke out above the upper Bollinger Band on June 8th, PRGO actually lost -3.07% on the following trading day.
While still in a long-term downtrend, the short and medium-term trends both turned bullish already.
Buying might accelerate should prices move above the close-by swing high at 56.48 where further buy stops could get triggered. Further buying might move prices higher should the market test June's nearby high at 58.26.
Among the 11 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 65 times, PRGO closed higher 60.00% 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 two trading days, showing a win rate of 56.92% with an average market move of 0.22%.