PRGO closes below its opening price unable to hold early session gains
Perrigo Company plc (PRGO) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, PRGO finished Wednesday at 49.84 losing $0.08 (-0.16%), but still slightly outperforming the S&P 500 (-0.46%). Trading $0.41 higher after the open, Perrigo was unable to hold its gains as the bears took control ending the day below its opening price. Closing within the prior day's range, prices failed to decisively move beyond the previous day's trading range in a lackluster session.
Daily Candlestick Chart (PRGO as at Sep 16, 2020):
Wednesday's trading range has been $0.99 (1.98%), that's below the last trading month's daily average range of $1.24. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for PRGO.
One bearish candlestick pattern matches today's price action, the Bearish Spinning Top.
Unable to break through the key technical resistance level at 50.14 (R1), the market closed below it after spiking up to 50.33 earlier during the day. The failure to close above the resistance might increase that levels importance going forward. When prices bounced off a significant resistance level the last time on September 8th, PRGO actually gained 1.08% on the following trading day.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Buying could accelerate should prices move above the nearby swing high at 51.10 where further buy stops might get activated.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bearish Spinning Top" stand out. Although it is usually interpreted as bearish, it has actually shown to be bullish for Perrigo. Out of 235 times, PRGO closed higher 53.62% 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 60.00% with an average market move of 0.31%.