PZZA closes lower for the 2nd day in a row
Papa John's International Inc. (PZZA) Technical Analysis Report for Nov 09, 2018 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, PZZA finished the week 0.49% higher at 55.21 after losing $0.19 (-0.34%) today, but still outperforming the S&P 500 (-0.92%). Closing within the prior day's range, prices missed to decisively move beyond the previous day's trading range.
Daily Candlestick Chart (PZZA as at Nov 09, 2018):
Friday's trading range has been $1.60 (2.89%), that's slightly below the last trading month's daily average range of $2.00. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for PZZA.
Three candlestick patterns are matching today's price action, the Bullish Hikkake Pattern which is known as bullish pattern, one bearish pattern, the Northern Doji and one neutral pattern, the Doji. The last time a Bullish Hikkake Pattern showed up on Tuesday, PZZA gained 5.48% on the following trading day.
Prices are trading close to the key technical support level at 53.82 (S1).
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Buying might accelerate should prices move above the close-by swing high at 57.06 where further buy stops could get triggered.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "2 Consecutive Lower Closes" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for Papa John's. Out of 305 times, PZZA closed higher 54.10% 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 57.70% with an average market move of 0.63%.