PVH closes below its opening price unable to hold early session gains
PVH Corp. (PVH) Technical Analysis Report for May 22, 2020 | by Techniquant Editorial Team
PVH ended the week 9.8% higher at 44.15 after edging lower $0.16 (-0.36%) today on low volume, underperforming the S&P 500 (0.24%) ahead of tomorrow's Memorial Day market holiday. Trading $0.70 higher after the open, the stock was unable to hold its gains as the bears took control ending the day below its opening price. 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 (PVH as at May 22, 2020):
Friday's trading range has been $1.94 (4.36%), that's far below the last trading month's daily average range of $3.51. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for PVH. Prices continued to consolidate within a tight trading range between 40.51 and 45.57 where it has been caught now for the whole last trading week.
One bearish candlestick pattern matches today's price action, the Bearish Spinning Top. The last time a Bearish Spinning Top showed up on April 28th, PVH actually gained 6.58% on the following trading day.
After having been unable to move above 44.90 in the previous session, the share ran into sellers again around the same price level today, missing to move higher than 45.20.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Buying might accelerate should prices move above the close-by swing high at 45.57 where further buy stops could get triggered. Selling might speed up should prices move below the nearby swing low at 40.51 where further sell stops could get activated. As prices are trading close to May's high at 47.58, upside momentum might accelerate should the market mark new highs for the month.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Close to Swing High" stand out. Though it is usually interpreted as neutral, it has actually shown to be bullish for PVH. Out of 723 times, PVH closed higher 52.28% 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 53.67% with an average market move of 0.45%.