PT dominated by bears dragging the market lower throughout the day
Pintec Technology Holdings Limited (PT) Technical Analysis Report for May 22, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, PT ended the week -24.39% lower at 0.93 after tanking $0.13 (-12.26%) today on high volume, strongly underperforming the S&P 500 (0.24%) ahead of tomorrow's Memorial Day market holiday. Today's close at 0.93 marks the lowest recorded closing price since December 20, 2019. The bears were in full control today, moving the market lower throughout the whole session. Closing below Thursday's low at 1.03, Pintec Technology confirmed its breakout through the previous session low after trading up to $0.14 below it intraday.
Daily Candlestick Chart (PT as at May 22, 2020):
Friday's trading range has been $0.16 (15.38%), that's far above the last trading month's daily average range of $0.11. 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.
One bearish candlestick pattern matches today's price action, the Black Candle.
Crossing below the lower Bollinger Band for the first time since April 3rd, prices have shown unusually strong downward momentum in the short-term. This could either indicate a potential selling climax after which prices might head back up towards the mean of the Bollinger Bands at 1.20 or signal the beginning of a strong momentum breakout leading to even lower prices. The last time prices broke out below the lower Bollinger Band on April 3rd, PT actually gained 24.32% on the following trading day.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Among the eight market conditions that our pattern recognition engine identified today, the statistics for the Technical Indicators based market condition "Close below the lower Bollinger Band" stand out. Its common bearish interpretation has been confirmed for Pintec Technology. Out of 27 times, PT closed lower 59.26% 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 81.48% with an average market move of -16.47%.