PZZA closes below its opening price unable to hold early session gains
Papa John's International Inc. (PZZA) Technical Analysis Report for Feb 14, 2020 | by Techniquant Editorial Team
PZZA ended the week 1.92% higher at 65.88 after losing $0.45 (-0.68%) today, underperforming the S&P 500 (0.18%) ahead of tomorrow's Presidents' Day market holiday. Trading $1.34 higher after the open, the market 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.
Daily Candlestick Chart (PZZA as at Feb 14, 2020):
Friday's trading range has been $2.20 (3.31%), that's far above the last trading month's daily average range of $1.44. Weekly volatility is also higher, being above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for PZZA.
Prices are trading close to the key technical support level at 65.63 (S1). After having been unable to move lower than 65.53 in the previous session, the stock found buyers again around the same price level today at 65.68. The last time this happened on Wednesday, PZZA gained 1.28% on the following trading day.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Among the five 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 204 times, PZZA closed higher 51.47% 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 59.80% with an average market move of 0.55%.