PTLA dominated by bulls lifting the market higher throughout the day
Portola Pharmaceuticals Inc. (PTLA) Technical Analysis Report for Feb 14, 2020 | by Techniquant Editorial Team
PTLA ended the week 3.8% higher at 13.65 after gaining $0.17 (1.26%) today on low volume, strongly outperforming the S&P 500 (0.18%) ahead of tomorrow's Presidents' Day market holiday. The bulls were in full control today, moving the market higher throughout the whole session. Closing within the previous day's range, prices missed to decisively move beyond the prior day's trading range in a lackluster session.
Daily Candlestick Chart (PTLA as at Feb 14, 2020):
Friday's trading range has been $0.31 (2.31%), that's far below the last trading month's daily average range of $0.63. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently significantly lower than usual for PTLA.
In spite of a weak opening Portola Pharmaceuticals managed to close above the previous day's open and close, forming a bullish Engulfing Candle. 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.
The stock managed to close back above the 20-day moving average at 13.62. After having been unable to move lower than 13.39 in the prior session, the share found buyers again around the same price level today at 13.40. The last time this happened on February 3rd, PTLA gained 6.50% on the following trading day.
While the market is experiencing a short-term uptrend, this might just be a correction, as both the medium and long-term trends are still bearish.
Buying could accelerate should prices move above the close-by swing high at 14.29 where further buy stops might get triggered. Selling could speed up should prices move below the nearby swing low at 13.10 where further sell stops might get activated. With prices trading close to this year's low at 12.62, downside momentum could accelerate should PTLA break out to new lows for the year. As prices are trading close to February's low at 12.67, downside momentum might speed up should Portola Pharmaceuticals 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 "Bullish Break through SMA 20" stand out. Though it is usually interpreted as bullish, it has actually shown to be bearish for Portola Pharmaceuticals. Out of 117 times, PTLA closed lower 63.25% 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 four trading days, showing a win rate of 54.70% with an average market move of -0.43%.