PT dominated by bulls lifting the market higher throughout the day
Pintec Technology Holdings Limited (PT) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team
PT finished Thursday at 1.69 surging $0.19 (12.67%) on low volume, significantly outperforming the S&P 500 (6.24%). This is the biggest single-day gain in over a month. The last time we've seen such an unusually strong single-day gain on January 16th, PT gained 7.64% on the following trading day. The bulls were in full control today, moving the market higher throughout the whole session. Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range in a lackluster session.
Daily Candlestick Chart (PT as at Mar 26, 2020):
Thursday's trading range has been $0.19 (12.67%), that's below the last trading month's daily average range of $0.25. Things look different on the weekly timeframe, where the market's trading range of the last week has been above the market's average weekly trading range. The longer-term, monthly volatility is currently just the same than usual for PT.
After moving lower in the previous session, the market managed to close higher but below the prior day's open, forming a bullish Harami Candle. Additionally, two candlestick patterns are matching today's price action, the Tweezer Bottom and the White Candle which are both known as bullish patterns.
Prices are trading close to the key technical support level at 1.48 (S1). Prices are trading close to the key technical resistance level at 1.91 (R1). The stock found buyers again today around 1.50 for the third trading day in a row after having found demand at 1.50 in the previous session and at 1.48 two days ago.
Crossing above the lower Bollinger Band, prices have lost at least some of their downward momentum in the short-term and might now be heading back up towards the mean of the Bollinger Bands at 2.12.
While still in a long-term uptrend, the short and medium-term trends both turned bearish already.
Selling could accelerate should prices move below the nearby swing low at 1.48 where further sell stops might get triggered. With prices trading close to this year's low at 1.47, downside momentum could speed up should Pintec Technology break out to new lows for the year.
Among the 12 market conditions that our pattern recognition engine identified today, the statistics for the Technical Indicators based market condition "Close crossed above the lower Bollinger Band" stand out. Although it is usually interpreted as bullish, it has actually shown to be bearish for Pintec Technology. Out of 10 times, PT closed lower 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 short side has been after 10 trading days, showing a win rate of 70.00% with an average market move of -18.35%.