PT slumps -15.56% on low volume
Pintec Technology Holdings Limited (PT) Technical Analysis Report for Jul 16, 2019 | by Techniquant Editorial Team
Moving lower for the 4th day in a row, PT finished Tuesday at 3.04 tanking $0.56 (-15.56%) on low volume, strongly underperforming the S&P 500 (-0.34%). This is the biggest single-day loss in over three weeks. The bears were in full control today, moving the market lower throughout the whole session. Closing below Monday's low at 3.55, the market confirmed its breakout through the prior session low after trading up to $0.53 below it intraday.
Daily Candlestick Chart (PT as at Jul 16, 2019):
Tuesday's trading range has been $0.82 (21.81%), that's far above the last trading month's daily average range of $0.51. Weekly volatility is also higher, being slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently just the same than usual for PT.
Three candlestick patterns are matching today's price action, the Bullish Hikkake Pattern and the Last Engulfing Bottom Pattern which are both known as bullish patterns and one bearish pattern, the Black Candle. The last time a Last Engulfing Bottom Pattern showed up on June 19th, PT actually lost -31.71% on the following trading day.
Pintec Technology closed back below the 20-day moving average at 3.40 for the first time since July 8th. After having been unable to move above 3.92 in the previous session, the stock ran into sellers again around the same price level today, failing to move higher than 3.84.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
With prices trading close to this year's low at 2.34, downside momentum might speed up should Pintec break out to new lows for the year. As prices are trading close to July's low at 2.94, downside momentum could accelerate should the share mark new lows for the month.
Among the 12 market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Price broke through Technical Support S1" stand out. Its common bearish interpretation has been confirmed for Pintec Technology. Out of 8 times, PT closed lower 75.00% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the short side has been after 10 trading days, showing a win rate of 87.50% with an average market move of -19.10%.