PZZA closes above its opening price after recovering from early selling pressure
Papa John's International Inc. (PZZA) Technical Analysis Report for Jun 30, 2020 | by Techniquant Editorial Team
PZZA finished the month 1.95% higher at 79.41 after gaining $1.03 (1.31%) today, slightly underperforming the S&P 500 (1.54%). Trading up to $3.06 lower after the open, Papa John's managed to reverse during the session as bulls took control ending the day above its opening price. 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 Jun 30, 2020):
Tuesday's trading range has been $3.78 (4.8%), that's slightly above the last trading month's daily average range of $3.29. 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 Takuri Line. The last time a Takuri Line showed up on March 18th, PZZA gained 38.76% on the following trading day.
After trading as low as 75.76 during the day, the stock found support at the 50-day moving average at 78.07. Prices are trading close to the key technical resistance level at 79.63 (R1).
Although the market is currently in a short-term downtrend, this might just be a correction, as both the medium and long-term trends are still bullish.
As prices are trading close to June's low at 75.75, downside momentum could accelerate should the share mark new lows for the month.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bullish Bounce off SMA 50" stand out. Its common bullish interpretation has been confirmed for Papa John's. Out of 24 times, PZZA closed higher 70.83% 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 79.17% with an average market move of 3.37%.