PZZA pushes through Thursday's high
Papa John's International Inc. (PZZA) Technical Analysis Report for Jul 31, 2020 | by Techniquant Editorial Team
PZZA ended the month 19.22% higher at 94.67 after gaining $1.42 (1.52%) today, outperforming the S&P 500 (0.77%). Today's close at 94.67 marks the highest recorded closing price ever. Trading up to $1.06 lower after the open, the share managed to reverse during the session as bulls took control ending the day above its opening price. Closing above Thursday's high at 93.91, Papa John's confirmed its breakout through the prior session high after trading up to $1.09 above it intraday.
Daily Candlestick Chart (PZZA as at Jul 31, 2020):
Friday's trading range has been $2.18 (2.32%), that's below the last trading month's daily average range of $3.19. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for PZZA. Prices continued to consolidate within a tight trading range between 90.77 and 95.00 where it has been caught now for the whole last trading week.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Selling could accelerate should prices move below the nearby swing low at 91.50 where further sell stops might get activated.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Bullish Intraday Reversal" stand out. Its common bullish interpretation has been confirmed for Papa John's. Out of 409 times, PZZA closed higher 50.37% 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 60.15% with an average market move of 0.91%.