PCAR dominated by bears dragging the market lower throughout the day
PACCAR Inc. (PCAR) Technical Analysis Report for Oct 27, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, PCAR ended Tuesday at 88.45 tanking $2.12 (-2.34%), notably underperforming the Nasdaq 100 (0.82%). This is the biggest single-day loss in over a month. Today's close at 88.45 marks the lowest recorded closing price since October 6th. The bears were in full control today, moving the market lower throughout the whole session. Closing below Monday's low at 89.49, the market confirmed its breakout through the previous session low after trading up to $1.12 below it intraday.
Daily Candlestick Chart (PCAR as at Oct 27, 2020):
Tuesday's trading range has been $3.02 (3.33%), that's far above the last trading month's daily average range of $2.20. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for PCAR.
One bearish candlestick pattern matches today's price action, the Black Candle.
Prices are trading close to the key technical support level at 87.55 (S1). The stock closed below the 20-day moving average at 89.08 for the first time since September 25th. When this moving average was crossed below the last time on September 17th, PCAR lost -1.89% on the following trading day. After having been unable to move above 91.42 in the prior session, PACCAR ran into sellers again around the same price level today, missing to move higher than 91.39.
While still in a long-term uptrend, the short and medium-term trends both turned bearish already.
Among the 11 market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Down Close Near Low of Period" stand out. Although it is usually interpreted as bearish, it has actually shown to be bullish for PACCAR. Out of 413 times, PCAR closed higher 51.33% 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 55.93% with an average market move of 0.64%.