PZZA pushes through Wednesday's high
Papa John's International Inc. (PZZA) Technical Analysis Report for Jan 23, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, PZZA ended Thursday at 66.92 gaining $0.78 (1.18%), notably outperforming the S&P 500 (0.11%). Today's close at 66.92 marks the highest recorded closing price since January 23, 2018. Closing above Wednesday's high at 66.63, the market confirmed its breakout through the previous session high after trading up to $0.45 above it intraday.
Daily Candlestick Chart (PZZA as at Jan 23, 2020):
Thursday's trading range has been $2.15 (3.28%), that's far above the last trading month's daily average range of $1.54. Weekly volatility is also higher, being slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for PZZA.
One bullish candlestick pattern matches today's price action, the White Candle.
With another close above the upper Bollinger Band, prices are confirming their strong upward momentum in the short-term. A drop back into the Bollinger Band on the next trading day while might signal a potential change in momentum that could lead to a correction back down towards the center of the Bollinger Bands at 64.41.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Trading close to 2018's high at 69.45 we might see further upside momentum if potential buy stops at the level get triggered.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "52 Week High" stand out. Its common bullish interpretation has been confirmed for Papa John's. Out of 203 times, PZZA closed higher 50.74% 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 58.62% with an average market move of 0.42%.