PVH finds buyers at key support level
PVH Corp. (PVH) Technical Analysis Report for Feb 14, 2020 | by Techniquant Editorial Team
PVH finished the week 3.38% higher at 89.37 after edging higher $0.09 (0.1%) today, slightly underperforming the S&P 500 (0.18%) ahead of tomorrow's Presidents' Day market holiday. Trading up to $0.98 lower after the open, the stock managed to reverse during the session as bulls took control ending the day above its opening price. The last time this happened on Tuesday, PVH gained 4.33% on the following trading day. Closing within the prior day's range, prices missed to decisively move beyond the previous day's trading range in a lackluster session.
Daily Candlestick Chart (PVH as at Feb 14, 2020):
Friday's trading range has been $1.31 (1.47%), that's far below the last trading month's daily average range of $2.39. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for PVH.
During the whole day, prices traded within the prior day's range, unable to trade above the previous day's high or below the prior day's low forming an Inside Bar. Additionally, two candlestick patterns are matching today's price action, the Bullish Spinning Top which is known as bullish pattern and one bearish pattern, the Hanging Man.
After trading down to 88.27 earlier during the day, the share bounced off the key technical support level at 89.02 (S1). The failure to close below the support could increase that levels significance as support going forward. The market found buyers again today around 88.27 for the third trading day in a row after having found demand at 88.13 in the previous session and at 88.22 two days ago.
PVH shows strength in the short-term supported by its long-term uptrend with only the medium-term trend being bearish.
Buying might speed up should prices move above the nearby swing high at 91.93 where further buy stops could get triggered. Selling might accelerate should prices move below the close-by swing low at 88.13 where further sell stops could get activated.
Among the 11 market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bounced off Technical Support S1" stand out. Its common bullish interpretation has been confirmed for PVH. Out of 447 times, PVH closed higher 59.51% 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 55.48% with an average market move of 0.74%.