PTLA finds buyers again around 6.85
Portola Pharmaceuticals Inc. (PTLA) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team
PTLA finished Thursday at 7.06 edging higher $0.10 (1.44%) on low volume, significantly underperforming the S&P 500 (6.24%). 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 (PTLA as at Mar 26, 2020):
Thursday's trading range has been $0.59 (8.43%), that's below the last trading month's daily average range of $0.88. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently lower than usual for PTLA. Prices continued to consolidate within a tight trading range between 6.48 and 7.58 where it has been caught now for the whole last trading week.
One bullish candlestick pattern matches today's price action, the Bullish Spinning Top. The last time a Bullish Spinning Top showed up on February 28th, PTLA actually lost -2.77% on the following trading day.
Prices are trading close to the key technical resistance level at 7.58 (R1). After having been unable to move lower than 6.75 in the prior session, the market found buyers again around the same price level today at 6.85.
While the share 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 nearby swing high at 7.58 where further buy stops might get activated. Selling could speed up should prices move below the close-by swing low at 6.48 where further sell stops might get triggered.
Among the four market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Close to Swing Low" stand out. Though it is usually interpreted as neutral, it has actually shown to be bullish for Portola Pharmaceuticals. Out of 552 times, PTLA closed higher 50.72% 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 54.53% with an average market move of 0.23%.