PX closes within previous day's range
Praxair Inc. (PX) Technical Analysis Report for Oct 12, 2018
PX ended the week -4.87% lower at 156.24 after gaining $1.98 (1.28%) today, slightly underperforming the S&P 500 (1.42%). Trading $0.96 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 failed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (PX as at Oct 12, 2018):
Friday's trading range has been $2.45 (1.56%), that's slightly below the last trading month's daily average range of $2.75. Things look different on the weekly timeframe, where the market's trading range of the last week has been way above the market's average weekly trading range. The longer-term, monthly volatility is currently higher than usual for PX.
During the whole day, prices traded within the previous day's range, unable to trade above the prior day's high or below the previous day's low forming an Inside Bar. Additionally, two candlestick patterns are matching today's price action, the Homing Pigeon which is known as bullish pattern and one bearish pattern, the Bearish Spinning Top.
Prices are trading close to the key technical support level at 154.22 (S1). Prices are trading close to the key technical resistance level at 158.25 (R1). After having been unable to move above 158.21 in the prior session, the market ran into sellers again around the same price level today, failing to move higher than 157.78. The last time this happened on October 3rd, PX lost -1.04% on the following trading day.
Crossing above the lower Bollinger Band, prices have lost at least some of their downward momentum in the short-term and might now be heading back up towards the mean of the Bollinger Bands at 162.78.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Selling could accelerate should prices move below the close-by swing low at 153.77 where further sell stops might get activated. Trading close to August's low at 152.52 we could see further downside momentum if potential sell stops at the level get triggered.
Among the eight market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Close to Swing Low" stand out. Although it is usually interpreted as neutral, it has actually shown to be bullish for Praxair Inc.. Out of 690 times, PX closed higher 52.90% 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 59.28% with an average market move of 0.78%.